How to use the Customer Lifetime Value Calculator

Estimate gross-contribution customer lifetime value from average order size, order frequency and retention.

Calculation formula

Simplified CLV = order value × orders per year × gross margin × average customer lifetime.

Recommended steps

1. Enter values using the units shown beside each field.
2. Review whether the example assumptions match your situation.
3. Run the calculator and compare the key metrics.
4. Use the source data or official rates when precision matters.

Known limitations

Does not discount future cash flows, include acquisition costs, customer cohorts or churn changes.