marketing calculator
Customer Lifetime Value (CLV) Calculator
Compute CLV from average purchase value, frequency, and customer lifespan with discount rate adjustments.
Inputs
Results
Annual Customer Revenue$300
Annual Customer Gross Profit$225
Simple CLV
$1,125
Discounted CLV (NPV)
$853
Formula
Customer Lifetime Value Formulas
Annual Revenue = APV * Freq. Annual Profit = Revenue * Margin%. Simple CLV = Annual Profit * Lifespan. Discounted CLV = Sum[ Annual Profit / (1 + r)^t ].Calculates the total monetary value a customer is expected to bring to your business over the lifespan, adjusted for profit margin and discount rate.
Step by step
How the calculation works
- 1Enter average order or purchase size per transaction.
- 2Input average transaction count per customer per year.
- 3Provide expected relationship duration in years.
- 4Enter gross profit margin percentage to isolate profit from revenue.
- 5Specify discount rate or cost of capital to compute net present value.
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