Free tool
Free customer lifetime value calculator
Evoriqa's free customer lifetime value calculator shows what one customer is worth. Enter your average order value, how many purchases a customer makes in a year and how many years they stay. Add a gross margin if you know it. The maths runs in your browser, and nothing you type is sent anywhere.
What a customer spends on one order, in your own currency.
How many orders a typical customer places in a year.
How long a typical customer stays. Part years are fine.
The share of each sale left after the cost of goods. Leave blank to see revenue only.
Customer lifetime value 600 in revenue (50 x 4 purchases a year x 3 years), 240 at a 40% gross margin
- Lifetime revenue
- 600per customer
- Lifetime gross profit
- 240at 40%
This is the simple revenue model. It does not model customers leaving early or the time value of money.
Keep the customers you already have
Customers can leave when nobody replies. Evoriqa’s AI agent answers on chat and phone from your own content and hands over to your team when a person is needed. Track how happy customers are with the CSAT calculator and the NPS calculator. See how many leave with the churn rate calculator.
How customer lifetime value is worked out
One common approach, in one formula. It is a rough guide, not a forecast.
The simple revenue model
CLV = average order value × purchases per year × years
50 per order, 4 orders a year, for 3 years is 600 in revenue. At a 40% gross margin, that is 240 in gross profit. Not sure of your margin? The markup calculator turns a cost and a price into one.
What it leaves out
It treats every customer as average and stays the full time. It ignores discounting, support costs and the cost of winning the customer.
Other models exist
Some models use the churn rate to estimate how long customers stay. Others predict spend from past orders. Pick one and use it the same way each time.
How to calculate customer lifetime value
- 01
Find your average order value
Divide your revenue by your number of orders over a period. Use real orders from your own sales records. - 02
Count purchases per year
Work out how many orders a repeat customer places in a year. If most buy once, use a number close to one. - 03
Estimate how many years they stay
Look at how long customers keep buying. Part years are fine, so 2.5 years works. Use your own history, not a guess. - 04
Add a gross margin if you know it
Enter the share of each sale left after the cost of goods. The calculator then shows gross profit as well as revenue.
Frequently asked questions
What is customer lifetime value?
Customer lifetime value, or CLV, is what one customer is worth to your business over the whole time they buy from you.
How is customer lifetime value calculated?
This calculator uses the simple revenue model. Multiply average order value by purchases per year, then by years as a customer.
Is this the only way to work out CLV?
No. It is one common approach. Other models account for customers leaving early, discounting and costs. They need more data and more assumptions.
Why add a gross margin?
Revenue ignores what the goods cost you. Gross margin keeps only the profit share of each sale, so the figure is closer to value.
What is a good customer lifetime value?
There is no single target. It depends on your prices, your costs and what you pay to win a customer. Compare it with your own acquisition cost.
Should I use the same number of years for everyone?
Not always. Customers stay for different lengths of time. Run the calculator once for each group you can tell apart, such as plan or product.
How does churn relate to lifetime value?
Customers who leave sooner stay fewer years, which lowers lifetime value. The churn rate calculator shows how many customers you lose in a period.
Does the calculator save my numbers?
No. The maths runs in your browser and nothing you type is sent to Evoriqa. Site analytics records only that a result was copied.
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