Customer Lifetime Value Estimator
Create a transparent unit-economics scenario from average order value, purchase frequency, active lifetime, gross margin and acquisition cost.
How to use this calculator
- Enter average order value, purchase frequency, expected active years, gross margin and acquisition cost.
- Check that every input uses the stated units and covers the same period, population or project scope.
- Change one assumption at a time when comparing scenarios.
Formula used by customer lifetime value estimator calculator
Lifetime revenue = order value × purchases/year × years; contribution = revenue × gross margin
- Lifetime revenue = order value × purchases/year × years; contribution = revenue × gross margin
- It does not model retention curves, discounting, support costs, taxes, returns or uncertainty. Inputs are assumptions, not guaranteed outcomes.
- Inputs are validated against the tool-specific constraints; displayed results are rounded for readability.
Worked examples
Worked example
A customer with 45 average order value, four purchases per year and a 2.5-year active life has 450 in simple lifetime revenue before margin and acquisition cost.
The calculator reports lifetime revenue, lifetime gross profit contribution and contribution after the entered acquisition cost.
The calculator reports lifetime revenue, lifetime gross profit contribution and contribution after the entered acquisition cost.
Understanding the result
Create a transparent unit-economics scenario from average order value, purchase frequency, active lifetime, gross margin and acquisition cost.
It does not model retention curves, discounting, support costs, taxes, returns or uncertainty. Inputs are assumptions, not guaranteed outcomes.
Important notes
It does not model retention curves, discounting, support costs, taxes, returns or uncertainty. Inputs are assumptions, not guaranteed outcomes.
Treat the result as an estimate for the assumptions entered; verify important specifications against the relevant source or professional guidance.
Frequently asked questions
Is this net profit CLV?
No. It estimates gross profit contribution less acquisition cost, not full net profit after all overhead.
Should the lifetime years be optimistic?
Use a defensible cohort-based estimate and compare conservative, base and optimistic scenarios.
How should I use this result?
Enter average order value, purchase frequency, expected active years, gross margin and acquisition cost.
Related calculators
- Customer Lifetime Value Calculator — Estimate gross-profit lifetime value from average revenue per customer, gross margin and an entered customer lifetime.
- Customer Acquisition Cost Calculator — Calculate average customer acquisition cost from marketing and sales spend and the number of new customers gained.
- Customer Acquisition Cost Payback Calculator — Estimate customer acquisition cost payback time from monthly customer revenue and gross margin.
- Gross Profit Calculator — Calculate gross profit and gross margin from revenue and direct costs.
- Blended Customer Acquisition Cost Calculator — Calculate blended acquisition cost from spend and new customer counts across three channels.
- Labour Cost per Unit Calculator — Calculate direct labour cost per good unit from labour hours, hourly cost and completed output.
Related explanations
Learn the method behind the number or compare the terminology before using the calculator.
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This page provides a calculation tool plus explanatory information so you can understand what the result means and when the underlying method may not fit your situation.