Enter CLV Inputs
Example Data Table
| Segment | Period Type | Total Customers | Total Orders | Total Revenue | Margin % | Retention % | Discount % | Service Cost | CAC |
|---|---|---|---|---|---|---|---|---|---|
| Core Customers | Month | 1000 | 3200 | $192,000.00 | 68.00% | 86.00% | 1.50% | $8.00 | $50.00 |
| Loyal Members | Quarter | 450 | 1100 | $132,000.00 | 72.00% | 90.00% | 2.00% | $11.00 | $64.00 |
| New Buyers | Month | 700 | 980 | $58,800.00 | 54.00% | 74.00% | 1.00% | $5.00 | $28.00 |
Formula Used
These formulas let you compare simple, discounted, and subscription-style CLV views.
1) Average Order Value
AOV = Total Revenue ÷ Total Orders
2) Purchase Frequency
Purchase Frequency = Total Orders ÷ Total Customers
3) Historical CLV
Historical CLV = (AOV × Purchase Frequency × Average Lifespan × Gross Margin) − CAC
4) Discounted CLV
Discounted CLV = ((Net Contribution per Period × Retention Rate) ÷ (1 + Discount Rate − Retention Rate)) − CAC
5) Subscription Approximation
Subscription CLV = (Net Contribution per Period ÷ (Churn Rate + Discount Rate)) − CAC
6) Payback Period
Payback Periods = CAC ÷ Net Contribution per Customer per Period
How to Use This Calculator
- Choose a period basis that matches your reporting cycle.
- Enter customers, orders, and revenue for that same period.
- Add gross margin, retention, discount, and service cost inputs.
- Use marketing spend and new customers to derive CAC, or override it manually.
- Set forecast periods, submit the form, then review cards, graph, and projection table.
- Export the summary to CSV or PDF for presentations, reviews, or campaign planning.
FAQs
1) What does CLV measure?
CLV estimates how much value one customer generates over the relationship, after considering revenue, margin, retention, and acquisition cost. It helps marketers judge whether growth is profitable.
2) Why does this page show multiple CLV methods?
Different businesses need different views. Historical CLV is simple, discounted CLV includes time value and retention, and subscription CLV works well for recurring-revenue models.
3) When should I use the manual CAC override?
Use the override when you already know a trusted customer acquisition cost from finance, attribution, or channel reporting. Leave it blank to calculate CAC from spend and new customers.
4) Why is discounted CLV often lower than historical CLV?
Discounted CLV reduces future cash flows to reflect risk and timing. It usually gives a more conservative estimate than historical methods, especially when retention weakens.
5) What does a negative CLV mean?
A negative CLV means expected contribution does not cover acquisition and servicing costs. You may need better retention, lower CAC, higher margin, or stronger order frequency.
6) How should I interpret the LTV:CAC ratio?
The ratio compares value created against acquisition cost. Higher values usually indicate healthier economics, while low values suggest campaigns may be too expensive or poorly retained.
7) Can I use this calculator for subscription businesses?
Yes. The subscription approximation is designed for recurring-revenue businesses. Enter period-aligned churn, margin, CAC, and service cost figures for more realistic outputs.
8) What makes the projection graph useful?
The graph shows how discounted contribution builds over time. It helps teams understand value timing, retention decay, and whether growth assumptions support future profitability.