Customer Lifetime Value Calculator
Calculate how much each customer is worth to your business over their entire relationship with you.
Your Business Metrics
Revenue
Customer Retention
How long a customer stays with you on average
Profitability
Revenue minus cost of goods/services sold
Marketing + sales cost to acquire one customer
Adjust the sliders and click
"Calculate CLV" to see your results
Understanding Customer Lifetime Value
The CLV Formula
This calculator uses gross profit margin to show your actual profit per customer, not just revenue.
CLV:CAC Ratio Benchmarks
- •<1:1 — Losing money on each customer
- •1:1 to 3:1 — Breaking even or thin margins
- •3:1+ — Healthy, sustainable business
- •5:1+ — Room to invest more in growth
Frequently Asked Questions
Why does CLV matter?
CLV helps you understand how much you can afford to spend acquiring customers while remaining profitable. It also highlights whether you should focus on getting new customers or retaining existing ones.
How do I find my customer acquisition cost?
Add up all your marketing and sales costs for a period, then divide by the number of new customers acquired. Include ad spend, sales salaries, tools, and any other costs directly tied to getting new customers.
How do I know my average customer lifespan?
Look at your customer churn rate. If you lose 25% of customers each year, your average lifespan is about 4 years (1 ÷ 0.25). A CRM can help you track this over time.
What if I have different customer segments?
Calculate CLV separately for each segment. You may find that some customer types are much more valuable than others, which can inform where you focus your marketing efforts.
Want to track customer value over time?
Try SkunkCRM - Free WordPress CRM