Customer lifetime value (CLV) estimates the total revenue, or profit, a typical customer brings in over the whole time they buy from you.
Enter values to calculate
Formula
CLV (revenue) = Average order value × Purchases per customer per year × Average customer lifespan (years)
CLV (profit) = CLV (revenue) × Gross margin ÷ 100
CLV:CAC ratio = CLV ÷ Customer acquisition cost (uses profit CLV when a gross margin is entered)