Customer Lifetime Value Calculator (CLTV)

Customer Lifetime Value (CLV) is a key metric that helps businesses understand how much revenue a customer will generate over their relationship with a company. Knowing your CLV helps you make smarter marketing decisions, improve customer retention, and maximize profits.

With the CLV calculator below, you can quickly estimate how much your customers are worth, helping you decide how much to invest in acquiring and keeping them.

What is Customer Lifetime Value?

CLV represents the total revenue a customer is expected to bring to your business over time. It helps answer questions like:

• How much should I spend on marketing to acquire a customer?
• Which customers are worth investing in for retention?
• How can I increase profits by improving customer relationships?

The basic formula for CLV is:

CLV = (Average Purchase Value) × (Purchase Frequency) × (Customer Lifespan in Years)

For example, if a customer spends $50 per purchase, buys 5 times a year, and remains a customer for 3 years, their CLV is $750 ($50 × 5 × 3).

Why CLV Matters

Smarter Marketing Spend – When you know how much a customer is worth, you can set the right budget for ads and promotions without overspending.

Better Customer Retention – Keeping high-value customers is more cost-effective than constantly finding new ones. Investing in great service and engagement keeps them coming back.

Higher Profits – A strong CLV means a predictable revenue stream, allowing you to scale your business more effectively.

How to Increase Your CLV

• Offer better customer service to build loyalty.
• Improve products or services to encourage repeat purchases.
• Use targeted marketing to personalize customer offers.
• Launch a loyalty program with discounts or rewards.

Start Calculating Your CLV Today

Understanding your Customer Lifetime Value helps you make better decisions and grow your business faster. Use the calculator above and take control of your profits today! 🚀