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CLTV Calculator — Customer Lifetime Value

Revenue-based lifetime value; excludes margins, discounting and acquisition costs.

Revenue-based lifetime value; excludes margins, discounting and acquisition costs.

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Result

Enter your values and run the tool to see your result.

What this tool does

Multiplies average order value, purchases per year, and years retained to estimate cumulative revenue per customer. It is revenue-based: margin and discounting are not applied.

How to use it

  1. Enter average order value: total revenue ÷ number of orders.
  2. Enter purchases per year.
  3. Enter average years retained.
  4. Run it to get lifetime value.

Worked example

An order value of 50, four purchases a year, over three years gives 50 × 4 × 3 = 600.

Calculation method

Revenue lifetime valueorder*frequency*years

Frequently asked questions

Can I compare this directly with CAC?
Carefully. Lifetime value here is revenue, while CAC is actual spend. Multiply by your margin to put it on a contribution basis before comparing.
Should future amounts be discounted?
For long horizons, yes. This tool does not discount, so revenue three years out counts at full value. Use fewer years for a conservative view.

What this tool does not cover

A simple multiplication model: churn changes, basket growth, and repeat-purchase distributions are not reflected. For a new business, the retention estimate is the largest source of error.

References