Customer Lifetime Value Calculator.
Calculate the total revenue you can expect from a single customer over the duration of your business relationship.
Understanding Customer Lifetime Value
Customer Lifetime Value (CLV) is one of the most important metrics for any business. It represents the total revenue you can expect from a single customer account throughout their entire relationship with your company.
Why CLV matters: Understanding CLV helps you make informed decisions about how much to invest in customer acquisition, which customer segments to focus on, and where to allocate marketing spend.
The CLV:CAC ratio compares the value a customer brings against the cost of acquiring them. An ideal ratio is 3:1 or higher -- meaning each customer generates at least three times what it cost to acquire them. A ratio below 1:1 indicates you are losing money on each new customer.