Finance

Customer Lifetime Value Calculator

CLTV = avg value × lifespan.

Calculated Output

CLTV ($) 1,000

Step-by-Step Breakdown

1. Values used:

2. Avg purchase value = 50 $

3. Purchases per year = 4

4. Avg customer lifespan = 5 years

5. CLTV = Avg purchase value x Purchases per year x Avg customer lifespan = 50 x 4 x 5 = 1,000$

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Frequently Asked Questions

CLTV:CAC ratio?

Aim for CLTV at least 3× CAC.