Customer Lifetime Value Calculator
Calculate CLV from revenue, margin, frequency, and lifetime
Frequently Asked Questions
CLV = Average revenue per purchase × Gross margin % × Purchase frequency (per month) × Customer lifetime (months). This works for any repeat-purchase business, not just subscriptions — retail, services, e-commerce.
The SaaS formula assumes a constant monthly churn rate and derives an implied average lifetime from it. This calculator instead uses a directly-estimated average customer lifetime and purchase frequency, which works better for non-subscription businesses where "churn rate" isn't a natural concept (e.g., a retailer without recurring billing).
Money received later is worth less than money today. The NPV version discounts each future month's expected profit back to today's value using your discount rate, giving a more conservative, finance-theory-correct estimate of what that customer relationship is actually worth right now.
3:1 or higher is the widely-cited healthy benchmark — meaning a customer is worth at least 3x what it cost to acquire them. Below 1:1 means you lose money on every customer relationship.