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Customer Lifetime Value Calculator

Estimate CLV and CLV:CAC ratio for your customers.

Introduction

Customer Lifetime Value Calculator — Estimate CLV and CLV:CAC ratio for your customers. Enter Average purchase value, Purchase frequency (per year), Customer lifespan (years), CAC (optional, for CLV:CAC ratio) to get an instant, accurate result.

Formula

Simplified CLV = average purchase value × purchase frequency per year × customer lifespan in years. CLV:CAC ratio = CLV / CAC, a common (not universal) SaaS/business health benchmark.

Step-by-step

  1. Enter the Average purchase value.
  2. Enter the Purchase frequency (per year).
  3. Enter the Customer lifespan (years).
  4. Enter the CAC (optional, for CLV:CAC ratio).
  5. Click Calculate to see your result instantly.

Real-world example

Example: With Average purchase value = 100, Purchase frequency (per year) = 4, Customer lifespan (years) = 5, CAC (optional, for CLV:CAC ratio) = 0, the Customer Lifetime Value Calculator gives Clv: 2000.

Frequently Asked Questions

Is this the only way to calculate CLV?
No — this is a widely used simplified model. More advanced approaches discount future revenue to present value or factor in gross margin and churn rate directly.
What CLV:CAC ratio is considered healthy?
A ratio of 3:1 or higher is a commonly cited rule of thumb, meaning a customer generates roughly three times what it cost to acquire them — but the right target depends on your margins and payback period tolerance.
What inputs does the Customer Lifetime Value Calculator need?
You'll need to provide: Average purchase value, Purchase frequency (per year), Customer lifespan (years), CAC (optional, for CLV:CAC ratio). All fields use sensible defaults, so you can see a working example immediately and then adjust the values to match your own numbers.
How accurate is the Customer Lifetime Value Calculator?
The Customer Lifetime Value Calculator applies the formula exactly as calculated — Simplified CLV = average purchase value × purchase frequency per year × customer lifespan in years. CLV:CAC ratio = CLV / CAC, a common (not universal) SaaS/business health benchmark. — so results are precise for the inputs you provide. Accuracy depends on entering correct, realistic input values.
Is the Customer Lifetime Value Calculator free to use?
Yes, the Customer Lifetime Value Calculator is completely free, requires no signup, and runs instantly in your browser.

About the Customer Lifetime Value Calculator

The Customer Lifetime Value Calculator uses a real, verifiable formula — Simplified CLV = average purchase value × purchase frequency per year × customer lifespan in years. CLV:CAC ratio = CLV / CAC, a common (not universal) SaaS/business health benchmark. — so results are accurate every time, not an approximation.