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Nida Urooj
Sales & marketing

Customer Lifetime Value Calculator

Estimate CLV from average order value, purchase frequency, and retention.

Enter your average order value, how often customers buy, and typical retention to see CLV and a safe CAC ceiling (LTV ÷ 3).

Lifetime revenue$1,440.00
Gross-profit CLV$576.00
Safe CAC ceiling (LTV ÷ 3)$192.00

How to use it

  1. 1Enter Average Order Value (AOV).
  2. 2Enter Purchase Frequency per year.
  3. 3Enter Customer Lifespan in years (or retention rate).

Real use cases

  • E-commerce owners setting ad budgets.
  • SaaS founders sanity-checking CAC.
  • Agencies pricing retainers.

Frequently asked

What's a healthy LTV:CAC ratio?

3:1 is the widely accepted target - LTV should be at least three times CAC for a sustainable business.

Should I use gross or net revenue?

Use gross profit for a defensible CLV. Net revenue after refunds and cost of goods gives the truest number.

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