Last updated on November 2nd, 2026 at 06:24 pm

Free SEO tool

Customer Lifetime Value (CLV) Calculator

By Digital Mansoor · 12+ years in SEO

Estimate what one customer is worth over their lifetime. Add your acquisition cost to get the LTV to CAC ratio.

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At a glance
  • Calculates customer lifetime value as gross profit, with churn and a discount rate.
  • Shows LTV to CAC ratio, net profit per customer and payback in months.
  • Gives a year-by-year table of active customers and cumulative profit.
  • Free, no signup, and nothing leaves your browser.
What it is

What is the CLV Calculator?

The CLV Calculator estimates how much gross profit an average customer brings over their relationship with you, using order value, purchase frequency, margin, churn and a discount rate.

It is built for small business owners and marketers who need to decide how much they can spend to win a customer.

How to use

How to use the free CLV Calculator

  1. Enter average order value and frequency: Orders per year.
  2. Enter years and margin: The lifetime in years and gross margin in percent.
  3. Choose churn or fixed lifetime: With churn, enter the yearly churn rate.
  4. Add discount rate and CAC: CAC is what you pay to win a customer.
  5. Read the results: Check LTV to CAC and payback.
Worked example

Example: input and output

A store with an average order of 1,800 and 6 orders a year.

Input
Average order value: 1,800 Orders per year: 6 Years: 3 Gross margin: 55 percent Yearly churn: 25 percent Discount rate: 10 percent CAC: 3,500
Output
CLV (gross profit) 12,751 with churn. Profit per active year 5,940. LTV to CAC 3.64 to 1. Net profit per customer 9,251. Payback 7.1 months. A table shows customers still active (100, 75, 56 percent) and cumulative profit of 5,940, 9,990 and 12,751.

Results shown are from the live tool. Amounts use whatever currency you enter.

How it helps

How the CLV Calculator helps your SEO work

  • Set a customer acquisition budget from real numbers.
  • Compare LTV to CAC with the common 3:1 rule of thumb.
  • See how long a customer takes to pay back.
  • Test what a lower churn rate does.
  • Explain the numbers to a client.
Why use this one

CLV Calculator compared with other free tools

I compared this with the CLV calculator on embarque.io, read from its page on 22 October 2026.

CheckThis toolembarque.io
Churn and discount rateYes, bothChurn yes; discount rate not mentioned
LTV to CAC ratioYesNot on the page; a separate calculator is linked
Payback periodYesNot mentioned
Year-by-year tableYesNot mentioned
SaaS modeNoYes: price, lifespan, expansion revenue
SignupNoneNone, per the page

Where they are ahead: embarque.io has a SaaS mode with monthly price and expansion revenue. This tool covers order-based businesses and adds LTV to CAC and payback.

Compared on 22 October 2026 by opening each tool and reading its page. Features can change.

Limits and accuracy

What the CLV Calculator cannot do

  • The result is an estimate from averages. Use cohort data when you have it.
  • Payback is simple and undiscounted: CAC divided by profit per year.
  • The first year is not discounted in the table.
  • The 3:1 LTV to CAC ratio is a rule of thumb, not a law.
  • It uses gross margin, so add costs to serve if they are high.
Privacy

Is my text or data sent anywhere?

Your numbers is processed in your browser and is not sent to this site or any other server. The Save button keeps snapshots in your own browser storage. The share link puts your input in the part of the URL after the # sign, which browsers do not send to servers, but anyone you give the link to can read it.

Questions

CLV Calculator FAQ

What is customer lifetime value?

It is the profit a customer brings over the time they buy from you.

What is a good LTV to CAC ratio?

Many use 3 to 1 as a rule of thumb. It depends on your business and cash.

How do I calculate CLV?

Multiply order value, orders per year and margin, then adjust for churn and the time value of money.

What is payback period?

The time to recover your CAC from a customer’s profit.

Does it use AI?

No. It uses formulas in your browser.

Which currency does it use?

Any. Enter your amounts and read the results in the same currency.

Is the CLV Calculator free?

Yes, it is free and needs no signup.

Want this done for your site?

Send your URL on WhatsApp and I will tell you what to fix first.

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