Customer Lifetime Value (CLV) Calculator

    The customer lifetime value calculator estimates the gross profit one customer brings over the whole relationship and compares it with acquisition cost. Free, no sign-up, instant.

    • Free
    • No sign-up
    • Instant result
    • Benchmarks included

    Customer Lifetime Value Calculator

    Calculate CLV and analyze customer profitability metrics

    Typical SaaS: 70-90%

    Optional for CLV:CAC analysis

    How it's calculated

    Definition
    Customer lifetime value (CLV or LTV) is the total gross profit you expect from one customer across the whole relationship.
    Formula
    CLV = average monthly revenue per customer × customer lifespan in months × gross margin %.
    Benchmark
    A CLV:CAC ratio of about 3:1 or higher is a common target. Below 1:1 you lose money on each customer you acquire.

    Our take

    CLV is only as good as the lifespan you plug in. Use observed cohort retention, not hope, and recalculate every quarter.

    Improve this number

    Customer Analytics software built for this metric:

    Frequently Asked Questions

    How do I calculate customer lifetime value?

    Multiply average monthly revenue per customer by expected lifespan in months, then by gross margin.

    What is a good CLV to CAC ratio?

    Around 3:1 or higher is a common target. Much higher can mean you're under-investing in growth.