CLTV Calculator

Estimate customer lifetime value from average order value, purchase frequency, gross margin, lifespan, and customer acquisition cost.

839.2K uses Updated · 2026-05-14 Runs locally · zero upload
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The CLTV Calculator helps growth and finance teams estimate the total value a customer generates over the entire relationship with a business. It combines average order value, purchase frequency, gross margin, lifespan, and CAC to produce both CLTV and the CLTV/CAC ratio, a key marker of subscription and e-commerce unit economics.

How to Use CLTV Calculator

  1. Enter average order value, purchases per year, and expected customer lifespan.
  2. Provide the gross margin percentage.
  3. Optionally enter Customer Acquisition Cost (CAC) for ratio and payback metrics.
  4. Review CLTV, CLTV/CAC ratio, and the CAC payback period.

Formula & Theory - CLTV Calculator

CLTV = AOV × purchases_per_year × lifespan_years × gross_margin
CLTV/CAC = CLTV / CAC
CAC_payback_years = CAC / (AOV × purchases_per_year × gross_margin)

Use Cases for CLTV Calculator

  • Evaluate the long-term ROI of marketing channels.
  • Set a CAC ceiling for paid acquisition campaigns.
  • Justify investments in retention or loyalty programs.
  • Compare unit economics across customer segments.

Frequently asked questions about CLTV Calculator

What is a healthy CLTV/CAC ratio?

For SaaS, a 3x ratio is widely considered healthy. E-commerce benchmarks vary and depend on margin and repeat rates.

Should I use revenue or gross profit?

Use gross profit (revenue × gross margin) for a financial view of CLTV. Revenue CLTV overstates value by ignoring cost of goods.

Does the model include retention curves?

No. It uses an average customer lifespan; cohort-based churn models can yield more accurate CLTV.

Is my data stored?

No. All calculations are local to your browser.