CLTV Calculator – Customer Lifetime Value

Estimate how much total profit an average customer generates over the entire relationship with your business.

Average Purchase Value

Purchases per Year

purchases

Average Customer Lifespan

years

Profit Margin

What is Customer Lifetime Value?

Customer Lifetime Value (CLTV or CLV) estimates the total profit a business can expect from a single customer account throughout the entirety of their relationship, helping guide marketing spend and retention decisions.

The formula

CLTV = Average Purchase Value × Purchase Frequency × Customer Lifespan × Profit Margin. This gives the total profit (not just revenue) expected from an average customer over their full relationship with the business.

This calculator is for general business planning and educational purposes. Real CLTV models may also factor in discount rates, acquisition cost, and churn probability for more precision.

Last reviewed August 2026