Finance calculator
Customer Lifetime Value Calculator
Use this customer lifetime value calculator to estimate how much gross profit a customer may represent over an average lifetime. CLV is a simplified business metric and should be compared with acquisition cost and retention assumptions.
Formula
- Estimated customer lifetime in months = 1 / monthly churn rate
- Monthly gross profit per account = average revenue per account x gross margin
- CLV = monthly gross profit per account x estimated customer lifetime
Example calculation
If average revenue is $200 per month, gross margin is 80%, and monthly churn is 4%, estimated customer lifetime is 25 months and CLV is about $4,000.
FAQ
What happens if churn is zero?
A zero churn input implies an unlimited lifetime in this simple formula, so the calculator asks for a positive churn rate to estimate CLV.
Is this revenue CLV or profit CLV?
This calculator estimates gross-profit-based CLV because it applies gross margin to average revenue.
Should CLV be compared with CAC?
Many teams compare CLV with customer acquisition cost, but both metrics depend on assumptions and should be interpreted carefully.
Educational disclaimer
MoneyHackWise calculators are for educational purposes only and do not provide financial, investment, tax, legal, accounting, lending, or business advice. Results are estimates based on the inputs and assumptions shown.