How this calculator works
Enter the values for first value, second value and review the units before calculating.
Formula / method
CLV = average order value × orders/year × lifetime × gross margin
Worked example
$75 × 4 orders × 3 years × 50% margin gives a $450 gross-profit CLV.
Assumptions and limitations
Purchase frequency and lifetime are stable averages, and margin is expressed as a percentage.
This is a gross-profit estimate and excludes acquisition, support, churn timing and discounting.