# Customer lifetime value calculator

> Free CLV calculator. Enter order value, purchase frequency, lifespan and margin to get profit CLV, LTV:CAC and the most you can pay to acquire a customer.

Free, no sign-up, runs in the browser: https://analify-ai.scalyax.ai/tools/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.

## 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.

## 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

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 as in 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 (example) | USD 119 | 4.75× |
| 2.75 | USD 149 | 5.94× |
| 3.3 | USD 178 | 7.13× |

## 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.

## Questions

**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.

## 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 reads 5 of these 6 inputs live. Try the calculator: https://analify-ai.scalyax.ai/tools/customer-lifetime-value-calculator

More free ecommerce calculators: https://analify-ai.scalyax.ai/tools