Customer lifetime value calculator
Work out what one customer is worth over the time they buy from you, in revenue and in profit, and the most you can pay to win one.
Example numbers. Replace them with yours.
- Profit CLV
- USD 119
- Revenue CLV
- USD 264
- LTV:CAC
- 4.75×
- Max CAC at your target ratio
- USD 39.60
- Revenue per customer per year
- USD 132
What it calculates
Customer lifetime value (CLV or LTV) is the money a customer brings over their whole relationship with you. Revenue CLV multiplies order value, orders per year and years as a customer. Profit CLV keeps only the margin, which is the number to compare with acquisition cost. LTV:CAC shows how many times over a customer pays back what it cost to get them.
How to read the result
Use profit CLV, not revenue CLV, when deciding what to pay for a customer. The target ratio is your choice. A higher one leaves more room for overheads and mistakes; a lower one lets you grow faster with less cushion. If you are new, years as a customer is a guess. Use the repeat behaviour you can already see.
Learn the metric:Customer lifetime value (LTV)CAC
The formula
Revenue CLV = AOV × orders per year × years Profit CLV = Revenue CLV × margin LTV:CAC = Profit CLV ÷ CAC Max CAC = Profit CLV ÷ target ratio
Worked example
Example inputs
- Average order value
- USD 60
- Orders per year
- 2.2
- Years as a customer
- 2
- Margin
- 45%
- Cost to acquire a customer
- USD 25
- Target LTV:CAC
- 3
Results
- Profit CLV
- USD 119
- Revenue CLV
- USD 264
- LTV:CAC
- 4.75×
- Max CAC at your target ratio
- USD 39.60
- Revenue per customer per year
- USD 132
What changes the result
Orders per year at five values. Every other input stays as in the worked example; the highlighted row is the example.
| Orders per year | Profit CLV | LTV:CAC |
|---|---|---|
| 1.1 | USD 59.40 | 2.38× |
| 1.65 | USD 89.10 | 3.56× |
| 2.2 | USD 119 | 4.75× |
| 2.75 | USD 149 | 5.94× |
| 3.3 | USD 178 | 7.13× |
Use your real numbers
Analify reads customers, orders and order values from Shopify and acquisition cost from your ad accounts, and shows customer lifetime value next to CAC.
Analify already reads 5 of these 6 inputs live, from Shopify · Ad accounts
Start freeQuestions
How do I calculate customer lifetime value?
Multiply average order value by orders per year and by years as a customer. Multiply by your margin to get profit CLV.
What is the difference between CLV and LTV?
None. Both mean customer lifetime value.
How much can I spend to acquire a customer?
Divide profit CLV by the LTV:CAC ratio you want to keep. At a profit CLV of 90 and a 3:1 target, you can pay up to 30.
Do you store what I enter?
No. The calculation runs in your browser and nothing is sent to Analify.
Give AI the business it was missing.
Connect your company, build its memory and start asking, deciding and approving from one place.
See pricing