Customer Lifetime Value Calculator

What it measures

Understanding Customer Lifetime Value

Estimate customer lifetime revenue from order value, purchase frequency, and lifespan. CalcPilot applies the formula Customer lifetime value = Average order value × Purchase frequency × Customer lifespan to the values you enter and updates the result in your browser. Revenue LTV is useful for a quick view, while contribution-margin LTV is stronger for acquisition and profitability decisions. Before comparing results, define each input consistently: use the same reporting period, currency, customer definition, and accounting scope. Small definition changes can move the answer more than the arithmetic itself. The result estimates total revenue from an average customer across the assumed relationship length. Treat the result as a decision aid rather than a guarantee. Run a base case, a conservative case, and an ambitious case to see which assumption has the greatest effect. Pair this metric with the adjacent measures linked below so an apparently strong number does not hide weak cash flow, margin, retention, or execution quality. Build cohort-specific values, apply gross margin, and compare the result with CAC and payback period. The most useful analysis records the source and date of every input, then repeats the calculation on a regular schedule. The simple model assumes stable behavior and ignores retention curves, discounting, support costs, and customer variation.