Marketing

Customer Lifetime Value Calculator

Estimate what a customer is worth over the whole relationship, and whether that justifies what you pay to win one.

Free · no account · calculates in your browser

Your numbers

Lifetime value

₹4,320

Gross profit, not revenue.

Lifetime revenue
₹9,600
CLV : CAC
5.4×

Under 1 means you lose money on every customer you buy.

How this is calculated

Lifetime revenue = AOV × Orders per year × Years. CLV = Lifetime revenue × Gross margin ÷ 100.

Margin-based, and undiscounted — money two years out is treated as worth the same as money today. Good enough for comparing channels, not for valuing a business.

Worked example

Average order value₹1,200
Orders per year4
Years retained2
Gross margin45 %
Your CAC₹800
Lifetime value₹4,320
Lifetime revenue₹9,600
CLV : CAC5.4×

Formula: Lifetime revenue = AOV × Orders per year × Years. CLV = Lifetime revenue × Gross margin ÷ 100.

Frequently asked questions

How do I calculate customer lifetime value?

Lifetime revenue = AOV × Orders per year × Years. CLV = Lifetime revenue × Gross margin ÷ 100. For example, with average order value of ₹1,200, orders per year of 4, years retained of 2, gross margin of 45 %, your CAC of ₹800, the lifetime value is ₹4,320.

What does this customer lifetime value calculator not include?

Margin-based, and undiscounted — money two years out is treated as worth the same as money today. Good enough for comparing channels, not for valuing a business.

Is this customer lifetime value calculator free?

Yes. It is free, needs no account, and calculates in your browser — the numbers you enter are not sent to LaunchGrid.

Related free tools

Selling online? Read how to sell online in India or calculate your product profit margin.

What people use this for

  • Decide what you can pay for a customer
  • Compare retention against acquisition
  • Justify a loyalty push
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