Customer Lifetime Value Calculator
Free customer lifetime value calculator. Multiply purchase value by frequency and lifespan to estimate CLV.
How Customer Lifetime Value Calculator Works
CLV = Average Purchase Value × Purchase Frequency × Customer Lifespan. Or for SaaS: CLV = (MRR per Customer × Gross Margin %) ÷ Monthly Churn Rate.
CLV:CAC Ratio Benchmarks
| Label | Meaning |
|---|---|
| CLV:CAC above 5:1 | Strong — consider increasing acquisition investment |
| CLV:CAC 3:1 | Minimum healthy benchmark (David Skok) |
| CLV:CAC 1:1–3:1 | Marginal — improve retention or reduce CAC |
| CLV:CAC below 1:1 | Losing money on every customer |
Frequently Asked Questions
What is Customer Lifetime Value?
Customer Lifetime Value (CLV or LTV) is the total revenue expected from a customer over their entire relationship with your business. For SaaS: CLV = (MRR × Gross Margin) ÷ Monthly Churn Rate. A customer paying $500/month with 80% gross margin and 2% monthly churn has a CLV of $20,000.
What is a good CLV?
CLV has no absolute benchmark — it's meaningful relative to CAC. The 3:1 LTV:CAC ratio (David Skok) means CLV should be at least 3x what you spent to acquire the customer. The higher the better, within reason.
How do I increase CLV?
Three levers: reduce churn (highest leverage — every retained month adds directly to CLV), increase expansion revenue (upsells multiply the MRR base), and raise prices for new customers (if NRR is strong, the market is likely under-priced).
Is my data stored?
No.
Can I use this on mobile?
Yes.
About This Tool
Built by the Calcyo team and last updated June 2026. All calculations follow industry-standard methodology. No data leaves your browser — calculations run entirely client-side using JavaScript. If you spot an error in the formula or benchmark data, email us at support@calcyo.xyz.