Customer Lifetime Value Calculator

Knowing your customer lifetime value helps you understand how much to spend on acquiring new customers. Use this simple formula:

CLV = Average Purchase Value × Purchase Frequency × Customer Lifespan

Your CLV shows the total revenue you can expect from a single customer over time.

Example:
You run a coffee subscription service:

Average purchase value: $30
Purchase frequency: 12 times per year
Customer lifespan: 3 years

CLV = $30 × 12 × 3 = $1,080
Annual Value = $30 × 12 = $360

Each customer is worth $1,080 over 3 years. You can afford to spend up to $360 on acquisition and still be profitable!