Free Customer Lifetime Value Calculator
See exactly how much each customer is worth over their entire relationship with your business — and how small retention improvements compound into massive revenue gains.
Frequently Asked Questions
What is Customer Lifetime Value (CLV/LTV)?
Customer Lifetime Value is the total revenue a single customer generates over the entire duration of their relationship with your business. CLV helps you decide how much you can spend on acquisition (CAC) while staying profitable.
What is a good CLV to CAC ratio?
Most healthy SaaS and ecommerce businesses target a CLV:CAC ratio of 3:1 or higher. A 1:1 ratio means you are losing money. A 5:1+ ratio often signals you are under-investing in growth and could acquire more customers.
How do I increase Customer Lifetime Value?
The four levers are: increase average order value (upsells, bundles), increase purchase frequency (email, retargeting), reduce churn (better onboarding, customer success), and grow margins (subscription tiers, premium services).
Why is reducing churn so impactful?
Churn compounds. A small drop in monthly churn from 5% to 3% can increase CLV by over 60% because customers stay longer, generating more total revenue. Retention is the #1 lever for growth-stage businesses.
Is this calculator suitable for my business model?
Yes. The calculator handles ecommerce (one-time purchases with repeat behavior), SaaS (subscription with churn), and service businesses (recurring revenue with retention). Adjust the inputs to match your model.
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