Business calculator
Free Customer Lifetime Value Calculator
Estimate customer lifetime revenue and optional gross profit.
Customer Lifetime Value Calculator
Practical business calculation
Estimate the revenue a customer may generate over time
This customer lifetime value calculator estimates revenue from average order value, purchase frequency, and lifespan. An optional gross margin turns lifetime revenue into an estimated lifetime gross profit.
Revenue estimate
Annual customer revenue is average order value multiplied by annual purchases.
Lifetime estimate
Annual revenue is multiplied by the assumed customer lifespan.
Optional gross profit
Enter a 0–100% gross margin to estimate lifetime gross profit.
Planning only
The result depends on assumptions and does not guarantee future customer behavior.
How to use this calculator
Enter the assumptions you already have
- 1
Add your figures
Use the inputs that match the period or decision you are analyzing.
- 2
Choose a currency
The shared currency setting keeps monetary results readable across supported currencies.
- 3
Review the result
Use the breakdown to check the arithmetic before applying it to a business decision.
How the estimate works
The model starts with average order value and purchases per year, then extends the annual revenue over the assumed lifespan. It is intentionally simple so the assumptions remain visible.
Gross margin option
When gross margin is entered, lifetime gross profit equals estimated lifetime revenue multiplied by gross margin. This is not the same as net profit after all operating costs.
Interpret the result carefully
Customer behavior can change. Review the assumptions against actual cohorts, refunds, discounts, churn, seasonality, and service costs before relying on the estimate.
Example: $1,200 lifetime revenue
Average order value: $100 Purchases per year: 4 Lifespan: 3 years Annual revenue: $400 Lifetime revenue: $1,200 At 40% gross margin: $480 gross profit
Common mistakes to avoid
Frequently asked questions
Practical questions people ask about this tool
Is this customer lifetime value guaranteed?
No. It is an estimate based on the values entered and should be updated as customer behavior changes.
What does gross margin add?
A gross margin converts estimated lifetime revenue into estimated lifetime gross profit before other operating costs.
What validation does the calculator use?
Purchases and lifespan cannot be negative, and gross margin is treated within a 0–100% range.
How is annual revenue per customer calculated?
Average order value multiplied by purchases per customer per year gives annual revenue per customer.
Related tools
Connect customer value to acquisition and orders
Customer Acquisition Cost Calculator
Calculate acquisition spend per customer.
Average Order Value Calculator
Calculate average order value.
Profit Margin Calculator
Review margin relative to selling price.
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