Free tools / Customer lifetime value
Customer lifetime value calculator
What one customer is worth over the whole relationship, from what they spend, how often, and for how long.
Lifetime value$2,160
Value a year$720
Lifetime value is what an average customer spends with you before they leave: the order value, times the orders in a year, times the years they stay. It is revenue, not profit. Multiply it by your gross margin to see what the customer is worth after the cost of serving them.
The number earns its keep next to the cost of acquiring a customer. If it takes $700 in marketing to win someone worth $2,160 over three years, the business works but the cash comes back slowly. If it takes $2,000, it does not work at all.