Customer Lifetime Value Calculator
Find how much a customer is worth over their lifetime — and the most you can afford to spend acquiring one.
Your numbers
Your results
Customer lifetime value
$720.00
Total revenue from one customer over 3 years.
Annual value
$240.00
Revenue per year
Total orders
12
Over their lifetime
A higher CLV means you can outspend competitors on ads. Loore learns what's already working in your account and generates winning ad variations on autopilot.
Start freeFrequently asked questions
- How do you calculate customer lifetime value?
- CLV = average order value × purchases per year × customer lifespan in years. For example, $60 per order × 4 orders a year × 3 years = $720 lifetime value. Multiply by your gross margin to get lifetime profit.
- What is the difference between CLV and LTV?
- They are the same thing — CLV (customer lifetime value) and LTV (lifetime value) both measure the total value a customer brings over their relationship with your business.
- How does CLV relate to ad spend?
- Your lifetime profit per customer is roughly the most you can afford to spend acquiring one (your max CAC). A higher CLV lets you bid more aggressively on ads than competitors and still stay profitable.
- What is a good CLV to CAC ratio?
- A common benchmark is a 3:1 ratio — earning at least three times your customer acquisition cost in lifetime value. Below 1:1 you lose money on every customer; the higher the ratio, the more room you have to scale.