Customer Lifetime Value Calculator
Estimate how much a customer is worth over their lifetime. Enter your average order value, purchase frequency, and customer lifespan to see CLV.
Enter Your Numbers
Average orders per customer per year
How long a customer typically stays
For margin-adjusted CLV
Results
Enter values to see results
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Understanding Customer Lifetime Value
What is CLV?
Customer Lifetime Value is the total revenue you can expect from a single customer across their entire relationship with your store. The simple formula is Average Order Value x Purchases per Year x Customer Lifespan. Multiplying by gross margin converts it from revenue to profit.
Why CLV matters
CLV sets the ceiling on what you can afford to spend acquiring a customer (CAC). A healthy business keeps CLV well above CAC — a common target is a 3:1 ratio. Knowing CLV turns marketing from guesswork into math.
CLV and pricing
Pricing affects every term in the CLV equation. Competitive, well-positioned pricing increases conversion and repeat purchases, lifting both frequency and lifespan. Monitoring competitors helps you defend the price points that keep customers buying from you instead of switching.
Keep Customers by Staying Price-Competitive
Customers leave when competitors undercut you. Price Patrol alerts you the moment a competitor changes price so you can react before you lose the repeat purchase.
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