What is customer lifetime value (CLV)?

CLV is the total profit a customer generates over their entire relationship with your business. Formula: Average Purchase Value × Purchase Frequency × Customer Lifespan × Profit Margin. It helps determine how much you can spend on acquisition.

Why is CLV important?

CLV determines how much you can afford to spend on customer acquisition while remaining profitable. A $500 CLV means you can spend up to $500 to acquire a customer and break even, or less to be profitable.

How can I increase customer lifetime value?

Increase purchase frequency through loyalty programs and email marketing, increase average order value through upselling and bundling, extend customer lifespan through excellent service, and improve profit margins through pricing optimization.

Biggest Calculator Hub

Business & AccountingVerifiedFeb 2026

Customer Lifetime Value Calculator

Name: Customer Lifetime Value Calculator
Author: Biggest Calculator Hub

Calculate the total value a customer brings to your business over their entire relationship with your company.

customer-lifetime-value.calculatorready

How to Use the Customer Lifetime Value Calculator

This free customer lifetime value calculator helps you quickly calculate customer lifetime value. Simply enter your values in the fields above and click "Calculate" to see your results instantly.

Understanding Your Results

After entering your information, the calculator will display your results including customer lifetime value, annual customer value, total lifetime revenue, total lifetime profit. Each result is calculated using standard formulas used by financial professionals and experts in the field.