What is the Customer Lifetime Value?
Estimate gross-profit value from a typical customer over the relationship.
This Calcwise tool is built around the question a user is actually trying to answer. The main result explains the outcome in plain language, while the supporting figures show how the answer was produced.
How to use this calculator
- Replace every example value with your own numbers.
- Read the What this means guide directly under each input.
- Check the main answer and the supporting breakdown.
- Enable Pro mode to compare an alternate years scenario without losing your main inputs.
Inputs used
- Average order value — Average revenue per order. Example: 80
- Purchases per customer per year — Average repeat purchase frequency. Example: 4
- Average customer lifespan — How long the customer stays active. Example: 3
- Gross margin — Share of revenue remaining after direct cost of goods/service. Example: 60
Customer Lifetime Value formula
The formula is shown so the result is not a black box. Where the result is an estimate, the assumptions are stated explicitly.
Worked example
The calculator opens with a usable example: Average order value = 80, Purchases per customer per year = 4, Average customer lifespan = 3. The live answer above shows what those sample inputs mean. Replace them with your own values to get your result.
Important assumptions and limitations
Estimate only. Use your own values and check important decisions against the relevant provider, contract or official rule.
Results should be treated as a planning aid. Real prices, platform rules, contracts, taxes, institutional policies, technical performance and other conditions can differ from a simplified calculator model.
Pro mode: compare another scenario
Pro mode changes the most decision-relevant driver while keeping the rest of your inputs fixed. This makes it easier to answer questions such as “what if this cost is higher?”, “what if I have less time?” or “what if performance changes?” without rebuilding the whole calculation.
Frequently asked questions
What does the Customer Lifetime Value calculate?
Estimate gross-profit value from a typical customer over the relationship.
What formula does the Customer Lifetime Value use?
CLV ≈ average order value × purchases/year × years × gross margin.
What should I enter in the Customer Lifetime Value?
Use the examples shown under each field as a guide, then replace every sample value with the numbers from your own situation.
Is the Customer Lifetime Value result exact?
Estimate only. Use your own values and check important decisions against the relevant provider, contract or official rule.