Customer Lifetime Value (CLV) Calculator
Enter average purchase, purchase frequency, lifespan, and margin. We compute lifetime revenue, lifetime gross profit, and a safe target CAC.
How this works
CLV = average purchase × purchases per year × years retained. We convert to profit using your margin, and suggest a target CAC at roughly one-third of lifetime profit.
Example
A $120 average ticket, 4 visits/year, 3-year lifespan, 55% margin = $1,440 lifetime revenue and ~$792 lifetime profit. A ~$260 target CAC keeps growth healthy.
FAQs
Why one-third for target CAC?
It leaves a third for gross profit contribution, a third for overhead, and a third for reinvestment. Adjust to your business.
What if I sell one-time services?
Set lifespan to 1 and purchases per year to 1. CLV then equals a single sale — and referral value becomes even more important.
Answer a short assessment to get a personalized marketing plan for your business.