Customer Lifetime Value Calculator

Work out what an average customer is worth over their lifetime — and what you can spend to win one.

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Customer lifetime value
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Quick answer: CLV = average order value × purchases per year × customer lifespan (years). A $40 order value, 4 orders/year for 3 years = $480 lifetime value. Multiply by your margin for profit CLV.

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How to use CLV

  • CLV sets your acquisition budget — if a customer is worth $480, you can comfortably spend a fraction of that to win them.
  • Aim for a 3:1 CLV-to-CAC ratio — lifetime value at least three times what it costs to acquire a customer.
  • Retention multiplies CLV — increasing lifespan or order frequency raises lifetime value fast.

Want repeat-buy products that lift CLV? ZIK Analytics helps you find proven sellers.

Frequently asked questions

What is customer lifetime value (CLV)?
CLV is the total revenue you expect from an average customer over the whole time they buy from you. It tells you how much you can afford to spend to acquire a customer.
How do I calculate CLV?
CLV = average order value × purchase frequency (orders per year) × customer lifespan (years). Multiply by your gross margin to get profit CLV.
Why does CLV matter?
It sets your customer-acquisition budget: if a customer is worth $300 over their lifetime, spending $50 to acquire them is a good deal. It also highlights the value of retention.
What is a good CLV to CAC ratio?
A common benchmark is a 3:1 ratio of lifetime value to customer-acquisition cost. Below 1:1 you lose money on every customer; above 3:1 you may be under-investing in growth.