🛒 E-Commerce Tools
Customer Lifetime Value (CLV) Calculator
Calculate how much each customer is worth over their entire relationship with your store.
Customer data
Fill in the details and click calculate.
Frequently Asked Questions
How is customer lifetime value calculated?
Average order value × orders per year × gross margin × average customer lifespan in years. Use contribution margin, not revenue — a $500-revenue customer at 30% margin is worth $150, not $500.
How do I increase customer lifetime value?
Raise repeat purchase rate (email/SMS flows, subscriptions), grow AOV (bundles, thresholds), and extend lifespan (loyalty programs, replenishment reminders). Retention moves LTV faster than acquisition ever will.
What LTV:CAC ratio should I target?
3:1 is the classic benchmark — below 2:1 growth burns cash, far above 4:1 may mean underinvesting in growth. Measure on margin-based LTV over a 12-month window for honesty.
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