Customer Lifetime Value Calculator


Regardless of its potential challenges, customer lifetime value (CLV) is a powerful tool and a very important marketing metric.

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How to Use the Customer Lifetime Value (CLV) Calculator

You only need to enter four numbers – please only type over the numbers in the white cells – the numbers in the orange cells are automatically calculated for you.

To calculate the customer lifetime value, you will need to enter:

  • Average customer acquisition costs
  • Average customer profit contribution per year
  • Average annual customer retention rate
  • An appropriate discount rate (normally in the range of 10%-20%)

In the spreadsheet calculation, the customer retention rate is used as an estimate of the probability of receiving future customer cash flows (that is, revenues and costs).

How to use the CLV Calculator


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