Customer Lifetime Value (CLTV) Calculator
See how much each customer is worth to your business.
Enter Customer Data Points
Enter your average order value, purchase frequency per year, and customer lifespan in years. Use typical spending patterns and retention timelines to calculate accurate revenue forecasts.
View Total Customer Value
Click calculate to see lifetime value per customer. Use your CLTV to justify acquisition spending, plan retention strategies, and compare customer profitability across different segments.
Key Benefits
Grow profitably with customer value insights that guide smarter acquisition and retention investments.
Justify Acquisition Costs
Know exactly how much to spend acquiring customers while staying profitable. Set smart CAC limits based on CLTV to ensure marketing campaigns deliver strong ROI without compromising profit margins.
Compare Customer Segments
Compare CLTV across segments to find most valuable customers. Focus retention on high-value groups that generate strong revenue while allocating marketing budgets for maximum profitability and ROI.
Forecast Revenue Growth
Project future revenue using lifetime value and customer base size. Forecast growth accurately to evaluate business health, plan strategic investments, and demonstrate profitability to investors.
Improve Retention Strategy
Create retention strategies using lifetime value. Keep high-value customers engaged while boosting purchase frequency and order values to maximize revenue generation and drive sustainable growth.
Frequently asked questions
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Customer lifetime value (CLTV) estimates total revenue one customer brings over their entire relationship with your business. Track it to justify acquisition costs, plan retention strategies, and forecast profitability across segments for smarter growth.
Multiply average order value by purchase frequency per year, then multiply by customer lifespan in years. Example: ₹1,200 × 6 purchases yearly × 20 years = ₹1,44,000 CLTV. Use real customer data for accurate revenue forecasts.
A good CLTV should be 3x to 4x higher than your customer acquisition cost. If your CAC is ₹400, aim for CLTV above ₹1,200 to ₹1,600. Compare CLTV across customer segments to identify most valuable groups and allocate resources effectively.
A coffee shop customer spending ₹200 per visit, visiting 24 times yearly for 5 years has CLTV of ₹24,000. Calculate yours by multiplying average spend, purchase frequency, and customer lifespan to forecast total revenue per customer over time.
Avoid using inconsistent time periods, ignoring churn rates, or forgetting to segment customers by value. Don't confuse gross revenue with profit—CLTV doesn't include costs. Use accurate data and update calculations regularly to reflect changing behavior.
Know exactly how much to spend acquiring customers while staying profitable. Set smart marketing budgets, compare customer segment profitability, forecast revenue growth, and improve retention strategies based on lifetime value to maximize long-term success.
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