Business

Customer Lifetime Value Calculator

Estimate simple customer lifetime value (CLV) from average order value, purchase frequency, gross margin and customer lifespan.

How to use this customer lifetime value calculator

Enter the values requested above and select Calculate. Change any input to compare another scenario. The calculation runs locally in your browser and does not require an account.

Formula and method

Simple CLV = average order value × purchases per year × customer lifespan × gross margin percentage.

Example

A $100 average order, 4 purchases per year, 3-year lifespan and 40% gross margin gives estimated CLV of $480.

Tips for a useful result

This simple model does not discount future cash flows or model churn by period.

What this calculator is useful for

Estimate simple customer lifetime value (CLV) from average order value, purchase frequency, gross margin and customer lifespan. The result is intended for quick estimates, checking arithmetic and comparing scenarios. When a result affects a contract, tax filing, medical decision, building-code requirement or other high-stakes situation, verify the result with the appropriate professional or authoritative source.

Frequently asked questions

What does the Customer Lifetime Value Calculator calculate?

Estimate simple customer lifetime value (CLV) from average order value, purchase frequency, gross margin and customer lifespan.

How does the Customer Lifetime Value Calculator work?

Simple CLV = average order value × purchases per year × customer lifespan × gross margin percentage.

Is the Customer Lifetime Value Calculator free to use?

Yes. ERICH Calculators is free to use and does not require an account.