# Customer Lifetime Value Calculator Canonical URL: https://thinkquarry.com/tools/customer-lifetime-value-calculator/ Last modified: 2026-10-21T15:52:54+00:00 Tools / Business & Marketing Calculators / CLV calculator FREE BUSINESS CALCULATOR ## Know your customer lifetime value. Free Customer Lifetime Value Calculator See the bigger picture behind every customer. Estimate lifetime revenue, understand gross profit, and put acquisition costs in context. ✓ No signup✓ No paid API✓ Calculations stay in your browser How customer lifetime value growsA customer makes repeated purchases over time, adding up to lifetime revenue. Gross margin turns that revenue into gross profit.$50$100$150Purchase 1Purchase 2Purchase 3Repeat purchases → lifetime value 01 / YOUR BUSINESS ## Start with your numbers CurrencyUSDPKRGBPEURAEDSARINRCADAUD Ecommerce / repeat ordersSaaS / subscription Your inputs are processed locally. No customer records or payment details required. Currency changes labels only. 02 / THE BIGGER PICTURE LIVE ESTIMATE Revenue-based customer lifetime value $1,800.00 Over an estimated 36-month customer lifespan Gross-profit CLV$1,080.00 Gross-profit CLV : CAC7.20 : 1 Gross profit after CAC$930.00 Simple CAC payback5.0 months ## Lifetime revenue breakdown 60% gross margin Gross profitDelivery / product costs Estimates exclude overhead, tax, discounting and future changes. ↓ Download CSVPrint / save PDF ↗ Gross profit is not net profit. Payback assumes steady average revenue and excludes churn timing. WHAT IF? ## A little more retention. A longer relationship. Explore the effect of a longer customer lifespan. Increase customer lifespan by 20%0%50% Scenario gross-profit CLV$1,296.00+$216.00 per customer BEHIND THE NUMBERS ## Clear formulas. Useful decisions. Built for marketers, online stores and SaaS teams who want to understand customer economics. View methodology sources ↗Explore more free ThinkQuarry tools. ## How to calculate customer lifetime value Customer lifetime value (CLV, LTV or CLTV) estimates the value of a customer relationship. A revenue estimate measures sales; a gross-profit estimate subtracts the direct cost of delivering those sales. Choose the measure that matches the decision you need to make. ## Ecommerce customer lifetime value formula Revenue CLV = average order value × annual purchase frequency × customer lifespan in years For example, $50 per order × 12 orders a year × 3 years gives $1,800 revenue CLV. At a 60% gross margin, gross-profit CLV is $1,080. Subtracting $150 CAC leaves $930 before overhead, taxes and other expenses. ## SaaS LTV calculator formula Revenue LTV = monthly revenue per customer ÷ monthly customer churn as a decimal Monthly revenue of $50 with 5% monthly customer churn gives $1,000 estimated revenue LTV and a 20-month expected lifetime. At 60% gross margin, gross-profit LTV is $600. The model includes an initial active month and assumes constant churn, constant revenue and no expansion revenue. Use customer churn rather than net revenue churn. ## CLV to CAC ratio and payback This tool divides gross-profit CLV by CAC. The simple payback period divides CAC by average monthly gross profit. Revenue-based ratios will be higher and should not be compared directly with these results. A high lifetime ratio can still hide slow cash recovery; there is no universal healthy ratio for every business. ## Where to find your inputs Use a consistent customer segment and observation window. Average order value is net sales divided by orders. Annual purchase frequency is annual orders divided by purchasing customers. Gross margin is (revenue − direct delivery costs) ÷ revenue × 100. Estimate lifespan from mature customer cohorts; an incomplete history can underestimate it. ## How to increase customer lifetime value Start with the reason customers leave. Improve onboarding, make the product easier to use and resolve recurring support problems. Relevant replenishment reminders or useful follow-up emails may increase repeat purchases. Test bundles and cross-sells against gross margin, not sales alone. For SaaS, track activation and retention by cohort before changing acquisition spend. Use the retention slider as a sensitivity test. Ecommerce mode extends lifespan by the selected percentage; SaaS mode reduces monthly churn by that percentage relative to its starting value. These are scenarios, not predictions or AI forecasts. ## Model limitations These are simplified, undiscounted average estimates. They do not model seasonality, expansion revenue, changing margins, cohort differences, future cash-flow discounting or individual buying probabilities. Zero churn cannot produce a finite SaaS estimate. For budgeting, validate assumptions against your actual cohorts and cash flow. A FEW GOOD QUESTIONS ## Customer lifetime value, explained. Is this customer lifetime value calculator free?Yes. Both models, the retention scenario, CSV export and print-to-PDF are free, with no signup or paid API. Use your browser’s Save as PDF option after selecting Print. What is the difference between CLV, LTV and CLTV?They are commonly used names for customer lifetime value. Always check whether a calculation is revenue-based, gross-profit-based or discounted; the abbreviation alone does not tell you. Is customer lifetime value the same as profit?No. Revenue CLV is expected sales. Gross-profit CLV applies your gross margin. Gross profit after CAC subtracts acquisition cost but still excludes overhead and tax. Can I enter monthly purchase frequency?In ecommerce mode, multiply monthly purchases by 12 and enter the annual figure. In subscription mode, both revenue and churn must be monthly. Do not mix monthly churn with annual revenue. Why does 0% churn show an error?Dividing by zero does not give a finite lifetime estimate. Use a realistic nonzero churn rate from an appropriate cohort, or use ecommerce mode with a specified finite lifespan as a separate simplified model. Does changing the currency convert my amounts?No. It changes the display currency only. Enter order values, revenue and CAC in the same currency. Are my business figures uploaded?The calculator does not upload your inputs. Calculations and CSV creation run in your browser. Normal website hosting requests still occur when loading the page. ## Methodology & sources Formulas checked on 21 October 2026. This calculator uses transparent arithmetic rather than a predictive AI model. HubSpot — customer lifetime value models ↗Stripe — subscriber LTV and churn ↗Shopify — customer lifetime value guide ↗ JavaScript is required for interactive calculations. Formulas and examples above remain available.