Free tool
Customer Lifetime Value Calculator
Calculate how much revenue each customer is worth over time and determine the maximum you should spend to acquire new ones.
Customer metrics
Results
Customer Lifetime Value
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CLV After Margin
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Monthly Value
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Max Acquisition Cost (1/3 Rule)
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Frequently Asked Questions
What is customer lifetime value (CLV)?
Customer lifetime value is the total revenue a business can expect from a single customer over the entire duration of their relationship. It helps ecommerce businesses decide how much to spend on acquiring and retaining customers.
How do I calculate customer lifetime value?
The basic CLV formula is: CLV = Average Order Value x Purchase Frequency x Customer Lifespan. For a more accurate picture, multiply by your gross margin percentage to get CLV after costs.
How much should I spend to acquire a customer?
A common rule of thumb is to spend no more than one-third of your CLV on customer acquisition. If your CLV after margin is $240, your maximum recommended CAC would be $80. This ensures profitability while scaling.
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