Customer Lifetime Value (CLV) Calculator — With LTV:CAC

How to use

1. Enter average order value and how often a customer buys per year.
2. Set your gross margin and how many years a customer typically stays.
3. Optionally add a discount rate and your CAC.
4. Read simple CLV, discounted CLV and the LTV:CAC verdict.

General information only — not medical, financial or legal advice. Figures cross-checked against public official sources (IRS / HMRC / NHS / WHO guidance); content last reviewed September 2026. For decisions that matter, confirm with a licensed professional in your country.

About this tool

Lifetime value is where pricing, retention and marketing budgets all meet — and where most back-of-napkin numbers fall apart. This calculator builds CLV the standard way: average order value × purchase frequency per year × gross margin × expected lifespan, so the output is the profit a customer brings, not the revenue mirage. It also offers a discount-rate variant that shrinks each future year's profit to today's dollars — how finance teams prefer to see it — and shows the year-by-year decay in a small table. Enter your CAC and the tool computes the LTV:CAC ratio against the classic 3:1 benchmark: below 1:1 you lose money on every customer, far above 5:1 you are probably underinvesting in growth. Use it for subscriptions, e-commerce or service retainers; all math runs locally and nothing you type is stored or sent anywhere.

FAQ

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