Novaris Web Media

Customer lifetime value calculator

Estimate how much revenue — or profit — an average customer brings you over time.

Quick answer: Customer lifetime value = average purchase × purchases per year × years as a customer. $120 × 3 × 4 years = $1,440.

The formula

CLV = average purchase × purchases per year × years as a customer

If you enter a profit margin, the result shows profit instead of revenue: CLV × margin %.

Example: $120 × 3 purchases × 4 years = $1,440 in revenue.

What to do with it

  • Set your maximum acquisition cost: never pay more to win a customer than they are worth.
  • Spot your best segments: customers who stay longer or buy more often deserve more of your budget.
  • Decide where retention work (email, loyalty, follow-up) pays off.

A simple estimate

This is a straightforward model. Real customers vary, so treat the result as a planning figure, not a promise.

More free calculators

Marketing ROI calculatorFind out whether a campaign paid for itself. Enter the revenue it generated and what you spent on it.Cost per acquisition (CPA) calculatorHow much does it cost to win one new customer? Enter your spend and the customers it brought in.Conversion rate calculatorWhat share of your visitors take the action you want — a purchase, a quote request, a call?Sales close rate calculatorOut of the prospects you talk to or quote, how many become customers?Average order value calculatorHow much does a customer spend, on average, each time they buy?

All marketing calculators →

Questions and answers

Should I use revenue or profit margin?

Margin is more useful for budgeting, because it shows what is left to spend on acquisition. Leave it empty to see revenue only.

How do I estimate years as a customer?

Look at how long your typical customers keep buying. If you are new, start with a cautious guess and update it as data comes in.

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