Customer Lifetime Value Calculator – CLTV Made Simple

Start Calculating Your Customer Lifetime Value Now

Calculate your customer lifetime value in minutes. Use this simple CLTV calculator to understand customer worth and make smarter business decisions.

Customer Lifetime Value calculator showing customer value, frequency, and lifespan inputs

The Customer Lifetime Value Calculator helps you estimate how much revenue a single customer is expected to generate over their relationship with your business. By factoring in purchase frequency, average order value, and customer lifespan, this tool gives you insight into customer profitability, guiding smarter marketing and retention strategies.

Why Use Our Customer Lifetime Value Calculator?

  • Understand Customer Worth - Know how much revenue each customer brings over time to prioritise high-value segments.
  • Guide Marketing Spend - Use CLTV to set smarter customer acquisition budgets and avoid overspending.
  • Improve Retention Strategies - Identify the long-term value of keeping customers and tailor loyalty efforts accordingly.
  • Support Financial Forecasting - Integrate lifetime value into revenue projections for better planning and growth management.
  • Make Informed Business Decisions - Align product development, pricing, and service improvements with customer value insights.

How It Works

  • Enter Your Average Purchase Value - Input the typical amount a customer spends per transaction.
  • Add Purchase Frequency - Specify how often a customer buys from you over a set period (e.g., per year).
  • Provide the Customer Lifespan - Estimate the average number of years a customer continues purchasing from your business.
  • Optional: Include Gross Margin - For more accuracy, enter your average profit margin to calculate net CLTV.
  • Get Your Results Instantly - The calculator multiplies these values to show you the estimated lifetime revenue per customer.

Why It Matters

Understanding your Customer Lifetime Value (CLTV) is essential because it shows how much revenue a single customer contributes to your business over time. This insight helps you make smarter decisions about how much to invest in acquiring and retaining customers, set more accurate marketing budgets, and forecast future growth more reliably. When you know your CLTV, you’re not just guessing—you’re building a strategy rooted in profitability and long-term success.

Start Calculating Your Customer Lifetime Value Now

Complete all the fields and you will find your rate in the summary. Do not fill in any of the label fields!
  • Churn Rate: You can use Churn Rate to estimate the average Customer Lifespan (CL) using the formula CL = (1/CR)
  • Customer Segmentation: Enter different APV, PF, GM, CR values per customer segment (e.g., new vs. loyal) and calculate individual CLTVs to identify high-value groups.

Improve Your Customer Lifetime Value

1. Increase Average Purchase Value (APV)

  • Upselling and cross-selling relevant products or services

  • Offering product bundles or service packages

  • Implementing loyalty pricing or rewards for higher spend

2. Increase Purchase Frequency (PF)

  • Sending timely reminders through email or SMS

  • Encouraging subscription-based purchases

  • Running loyalty programs that reward frequent buyers

3. Improve Gross Margin (GM)

  • Adjusting pricing strategies to reflect value

  • Reducing cost of goods sold through better sourcing

  • Focusing on promoting high-margin offerings

4. Reduce Churn Rate

  • Enhancing onboarding to improve early experiences

  • Proactively managing accounts through customer success teams

  • Using feedback to address issues before they cause churn

  • Launching retention campaigns to re-engage customers

5. Segment and Personalise

  • Identifying and focusing on high-LTV customer groups

  • Customising experiences, offers, and communications for different segments

 
 
 

Our partners

A few amazing brands we work with to give our clients the best possible service.

Mailchimp
Customer Relationship Management
HubSpot
Customer Relationship Management
Bitrix24
Customer Relationship Managament
Omnisend Partner
Omnisend
Email & SMS Marketing
Shopify Partner
Shopify
eCommerce

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