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Calcimator

Customer Lifetime Value (CLV) Calculator

Calculate customer lifetime value including discounted cash flow, CLV:CAC ratio, and annual profit per customer.

Inputs

$
years
%
$
%

Results

CLV (Discounted)

$1,364.68

≈ 10 pairs of sneakers

Net CLV (after CAC)$1,264.68
Lifetime Revenue$3,000.00
Annual Revenue/Customer$600.00
CLV:CAC Ratio13.65x
How to Use This Calculator
  1. Enter average purchase value ($), purchases per year, and average customer lifespan (years).
  2. Set gross margin (%) and customer acquisition cost (CAC).
  3. Adjust the discount rate (%) to calculate present value of future cash flows.
  4. Review CLV (Discounted), Net CLV (after CAC), and CLV:CAC Ratio.

How the result changes with Avg Purchase Value

Avg Purchase ValueCLV (Discounted)
$10,001.00$272,963.94
$35,001.00$955,305.56
$65,000.00$1,774,088.21
$90,000.00$2,456,429.83

What each input means

Avg Purchase Value
Average dollar amount a customer spends per transaction
Purchases per Year
How many times per year an average customer makes a purchase
Customer Lifespan
Average number of years a customer remains active with your business
Gross Margin
Percentage of revenue remaining after cost of goods sold
Acquisition Cost (CAC)
Total cost to acquire one new customer including marketing and sales
Discount Rate
Annual rate used to calculate the present value of future cash flows

How this is calculated

Worked example, using the default values

  1. Identify Input Parameters
    4 parameters
    Avg Purchase Value = 50, Purchases per Year = 12, Customer Lifespan = 5, Gross Margin = 60 = 6 input(s) provided
  2. Calculate CLV
    CLV
    1364.68 = $1,364.68
  3. Calculate Net CLV
    Net CLV
    1264.68 = $1,264.68
  4. Calculate Lifetime Revenue
    Lifetime Revenue
    3000 = $3,000

Engine last updated . Checked against 1 independently-derived test — how we verify calculators.

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