What is the Customer Lifetime Value (CLV) Calculator?
A Customer Lifetime Value (CLV) calculator helps you estimate how much revenue a customer brings to your business over the entire time they stay with you.
It’s a simple tool to measure customer profitability and make better marketing and sales decisions.
Note: To calculate your cost, use our Customer Acquisition Cost Calculator.
How do you calculate Customer Lifetime Value (CLV)?
Here’s a simple step-by-step guide to calculate CLV:
Enter your Annual Revenue per Customer (Yearly)
This is how much money one customer brings to your business every year.
Enter your Customer Relationship in Years (Yearly)
This is how long, on average, a customer stays with your business.
Enter your Customer Acquisition Cost (Yearly)
This is the cost of bringing in a new customer, including marketing and sales expenses.
Find the Total Customer Lifetime Value (CLV)
Use the formula: CLV = (Annual revenue per customer × Customer relationship in years) – Customer acquisition cost
This will give you the total value a customer brings to your business over their relationship with you.