When to use this calculator
Estimate customer lifetime gross profit from order behaviour and an entered duration. A simple undiscounted gross-profit model; acquisition costs, retention costs and uncertainty are excluded.
Explore the marketing & customer calculators for other questions in this topic. For a related calculation, use the Customer Retention Rate Calculator: Estimate retained starting customers after excluding customers acquired during the period.
PUTTING IT INTO PRACTICE
Customer Lifetime Value: a worked example
The values below are an illustrative example, not a recommendation. Replace them with measurements or assumptions that match your question.
| Input | Example value |
|---|---|
| Average revenue per order | 50 |
| Orders per customer per year | 4 |
| Customer lifespan (years) | 3 |
| Gross margin (%) | 40 |
| Result | 240 currency units |
- Check the input labels and enter the example values above.
- Apply the relationship: Gross-profit CLV = order value × yearly frequency × years × margin.
- The result is 240 currency units, rounded for display.
How to interpret your result
A simple undiscounted gross-profit model; acquisition costs, retention costs and uncertainty are excluded.
Define the event, audience and attribution window before calculating a rate. Clicks, customers and orders are different units. Acquisition cost and campaign CPA may cover different spending categories.
Frequently asked questions
Should I count unique users or total events?
Use the definition matching your metric. State it consistently because repeat events can produce a different rate from unique people.
When is the customer lifetime value calculator useful?
Estimate customer lifetime gross profit from order behaviour and an entered duration. A simple undiscounted gross-profit model; acquisition costs, retention costs and uncertainty are excluded.
How do I use the customer lifetime value calculator?
Enter average revenue per order, orders per customer per year, customer lifespan (years), gross margin (%). The result updates automatically. Use the units shown beside each input; the example values illustrate the method.
Which formula does this calculator use?
Gross-profit CLV = order value × yearly frequency × years × margin.
What should I check before using the result?
A simple undiscounted gross-profit model; acquisition costs, retention costs and uncertainty are excluded.
How are results rounded?
Scalar numbers display up to six decimal places, with scientific notation for very large or small values. Text, fraction, date and schedule outputs use the format described on the tool. Intermediate calculations use JavaScript floating-point arithmetic. Keep sensible precision for your measurements.
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