Customer Lifetime Value Calculator

✖Average Cost of Customer Value is the average revenue value that each customer brings to your business during a given timeframe.ⓘ Average Cost of Customer Value [ACV]			+10% -10%
✖Average Cost of Customer Lifetime is a metric which is used in the calculation of customer lieftime value, which refers to the average cost spent on a customer in a period.ⓘ Average Cost of Customer Lifetime [ACL]			+10% -10%
✖Customer Acquisition Cost is the amount of money a business spends to get a customer to purchase its products or services.ⓘ Customer Acquisition Cost [CAC]			+10% -10%

✖Customer Lifetime Value is a metric that represents the total net profit a company can expect to generate from a customer throughout their entire relationship.ⓘ Customer Lifetime Value [CLV]

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Formula

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Customer Lifetime Value

Formula

`"CLV" = ("ACV"*"ACL")-"CAC"`

Example

`"110000"=("2000"*"60")-"10000"`

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Customer Lifetime Value Solution

STEP 0: Pre-Calculation Summary

Formula Used

Customer Lifetime Value = (Average Cost of Customer Value*Average Cost of Customer Lifetime)-Customer Acquisition Cost
CLV = (ACV*ACL)-CAC
This formula uses 4 Variables

Variables Used

Customer Lifetime Value - Customer Lifetime Value is a metric that represents the total net profit a company can expect to generate from a customer throughout their entire relationship.
Average Cost of Customer Value - Average Cost of Customer Value is the average revenue value that each customer brings to your business during a given timeframe.
Average Cost of Customer Lifetime - Average Cost of Customer Lifetime is a metric which is used in the calculation of customer lieftime value, which refers to the average cost spent on a customer in a period.
Customer Acquisition Cost - Customer Acquisition Cost is the amount of money a business spends to get a customer to purchase its products or services.

STEP 1: Convert Input(s) to Base Unit

Average Cost of Customer Value: 2000 --> No Conversion Required
Average Cost of Customer Lifetime: 60 --> No Conversion Required
Customer Acquisition Cost: 10000 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

CLV = (ACV*ACL)-CAC --> (2000*60)-10000

Evaluating ... ...

CLV = 110000

STEP 3: Convert Result to Output's Unit

110000 --> No Conversion Required

FINAL ANSWER

110000 <-- Customer Lifetime Value

(Calculation completed in 00.004 seconds)

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Credits

Created by Vishnu K

BMS College of Engineering (BMSCE), Bangalore

Vishnu K has created this Calculator and 200+ more calculators!

Verified by Nayana Phulphagar

Institute of Chartered and Financial Analysts of India National college (ICFAI National College), HUBLI

Nayana Phulphagar has verified this Calculator and 1400+ more calculators!

< 8 Sales Metrics Calculators

Customers Lifetime Value with Discount Rate

Go Customer Lifetime Value = (Contribution Margin*Customer Retention Rate)/(1+Discount Rate-Customer Retention Rate)

Sales Velocity

Go Sales Velocity = (Sales Opportunities Contacted*Deal Value*Sales Win Rate)/Length of Sales Cycle

Customer Lifetime Value

Go Customer Lifetime Value = (Average Cost of Customer Value*Average Cost of Customer Lifetime)-Customer Acquisition Cost

Customer Retention Rate

Go Customer Retention Rate = (Existing Customers-Customers at Beginning)/Customers at Beginning

Sales Pipeline Conversion Rate

Go Sales Pipeline Conversion Rate = Leads to the Next Stage/Sales Opportunities Contacted

Sales Win Rate

Go Sales Win Rate = (Sales Opportunities Won/Sales Opportunities Contacted)*100

Sales Cycle

Go Sales Cycle = Days Spent on Sales Won/Sales Opportunities Contacted

Sales Revenue

Go Sales Revenue = Number of Units Sold*Average Price Per Unit

Customer Lifetime Value Formula

Customer Lifetime Value = (Average Cost of Customer Value*Average Cost of Customer Lifetime)-Customer Acquisition Cost
CLV = (ACV*ACL)-CAC

What is Customer Lifetime Value?

It is a valuable tool for businesses to assess the long-term value of acquiring and retaining customers. CLV helps businesses make strategic decisions related to marketing, customer acquisition, and customer retention by quantifying the financial impact of customer relationships.
Customer Lifetime Value guides strategic decisions related to customer acquisition costs. If the CLV is higher than the cost of acquiring a customer, it may justify investing more in marketing and sales efforts.

How to Calculate Customer Lifetime Value?

Customer Lifetime Value calculator uses Customer Lifetime Value = (Average Cost of Customer Value*Average Cost of Customer Lifetime)-Customer Acquisition Cost to calculate the Customer Lifetime Value, The Customer Lifetime Value formula is defined as a metric that measures total revenue a business can expect to generate from a customer over the course of their relationship with the company. Customer Lifetime Value is denoted by CLV symbol.

How to calculate Customer Lifetime Value using this online calculator? To use this online calculator for Customer Lifetime Value, enter Average Cost of Customer Value (ACV), Average Cost of Customer Lifetime (ACL) & Customer Acquisition Cost (CAC) and hit the calculate button. Here is how the Customer Lifetime Value calculation can be explained with given input values -> 110000 = (2000*60)-10000.

FAQ

What is Customer Lifetime Value?

The Customer Lifetime Value formula is defined as a metric that measures total revenue a business can expect to generate from a customer over the course of their relationship with the company and is represented as CLV = (ACV*ACL)-CAC or Customer Lifetime Value = (Average Cost of Customer Value*Average Cost of Customer Lifetime)-Customer Acquisition Cost. Average Cost of Customer Value is the average revenue value that each customer brings to your business during a given timeframe, Average Cost of Customer Lifetime is a metric which is used in the calculation of customer lieftime value, which refers to the average cost spent on a customer in a period & Customer Acquisition Cost is the amount of money a business spends to get a customer to purchase its products or services.

How to calculate Customer Lifetime Value?

The Customer Lifetime Value formula is defined as a metric that measures total revenue a business can expect to generate from a customer over the course of their relationship with the company is calculated using Customer Lifetime Value = (Average Cost of Customer Value*Average Cost of Customer Lifetime)-Customer Acquisition Cost. To calculate Customer Lifetime Value, you need Average Cost of Customer Value (ACV), Average Cost of Customer Lifetime (ACL) & Customer Acquisition Cost (CAC). With our tool, you need to enter the respective value for Average Cost of Customer Value, Average Cost of Customer Lifetime & Customer Acquisition Cost and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

How many ways are there to calculate Customer Lifetime Value?

In this formula, Customer Lifetime Value uses Average Cost of Customer Value, Average Cost of Customer Lifetime & Customer Acquisition Cost. We can use 1 other way(s) to calculate the same, which is/are as follows -

Customer Lifetime Value = (Contribution Margin*Customer Retention Rate)/(1+Discount Rate-Customer Retention Rate)

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