Customer Lifetime Value Calculator
Calculate what a customer is worth over time with CLV, CAC ratio and a maximum sensible acquisition cost. Six inputs, live results, no signup.
Work out customer lifetime value
Choose an explicit lifetime model
Uses the customer inputs above. Observed lifespan ignores retention; a finite cohort applies retention once per annual period. The legacy cap is retained as a separate option. Payback assumes revenue is spread evenly through each year.
Results stay on your device. Copy, download or print includes your inputs and the stated assumptions. Enquiries do not automatically attach your inputs.
Example, assumptions and model details
For $100 annual revenue, three periods and 50% retention, a finite cohort produces $100 + $50 + $25 = $175. The legacy lifetime-cap model instead gives $200.
Observed lifespan and retention are different model inputs. Revenue is not profit; support, fulfilment, refunds, discounting and unentered costs can change value.
- Evidence basis
- Elev8d's planning assumptions, or the numbers you enter. Not an independent benchmark.
- Population and market
- Built for Australian businesses. Not based on a survey of the market.
- Review owner
- Elev8d
- Model version
- 2026-09-20
How to use this tool
Use sales or cohort records for average purchase, frequency, lifespan and retention. Choose a consistent definition of a customer.
Enter margin and acquisition cost on the same basis. Zero acquisition cost is valid but produces no finite ratio.
Review which lifetime model is selected. Treat any target acquisition ratio as a planning preference, not a universal rule.
How CLV is calculated
Revenue is purchase value × purchases per year × effective years. Effective years follow a finite annual cohort: year one counts in full, and each later year keeps your annual retention rate of the year before, up to your entered lifespan (a part year counts in proportion). Payback is the month in which the cohort's gross profit covers the acquisition cost, within that lifespan.
Gross margin converts revenue to profit before acquisition cost. The ratio compares that profit with CAC. The 3:1 target is illustrative; operating costs, discounting and cash-flow timing are not modelled.
Frequently Asked Questions
Straight answers about what this tool measures, the assumptions behind it, and what to do with the result.
Estimate customer revenue and contribution with explicit lifetime, retention and acquisition-cost assumptions. Handle zero costs and margins honestly.
For $100 annual revenue, three periods and 50% retention, a finite cohort produces $100 + $50 + $25 = $175. The legacy lifetime-cap model instead gives $200.
Observed lifespan and retention are different model inputs. Revenue is not profit; support, fulfilment, refunds, discounting and unentered costs can change value.
Want to Grow the Number, Not Just Measure It?
CLV grows through retention, repeat purchase and better customers. A free audit shows which channel is bringing you the customers worth keeping and what winning more of them costs.