What is Customer Lifetime Value (CLV)?

Customer Lifetime Value (CLV) is the total revenue a business can expect from a single customer account throughout their relationship. It helps businesses determine how much they can afford to spend on customer acquisition while remaining profitable.

How do you calculate CLV?

CLV is calculated using the formula: CLV = (Average Order Value × Purchase Frequency × Customer Lifespan) - Customer Acquisition Cost. Our calculator also factors in retention rates, discount rates, and viral coefficients for more accurate predictions.

Why is CLV important for D2C brands?

CLV is crucial for D2C brands because it helps optimize marketing spend, identify high-value customer segments, improve retention strategies, and make data-driven decisions about customer acquisition costs and lifetime profitability.

What is a good CLV to CAC ratio?

A healthy CLV to CAC ratio is typically 3:1 or higher, meaning the lifetime value of a customer should be at least three times the cost to acquire them. Ratios below 3:1 may indicate unsustainable customer acquisition costs.

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Customer Lifetime Value (CLV) Calculator

Calculate the total revenue a customer will generate throughout their relationship with your business. Use this metric to determine how much you can afford to spend on acquisition.

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💎 Advanced CLV Modeler v2.0

Calculate Discounted CLV with Churn, Viral Effects, and Revenue Expansion.

Customer Lifetime Value (CLV) Calculator

💎 Advanced CLV Modeler v2.0

Global Assumptions

👥 Customer Segments