Customer Lifetime Value (CLTV) Calculator

Enter the details:

Average Revenue generated per transaction ($)

No. of transactions per year

Duration of customer relationship (in Years)

Calculate

Customer Lifetime Value ($)

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How to use this Tool?

What is Customer Lifetime Value (CLTV)?

Customer Lifetime Value (CLTV) is a sales and marketing metric that estimates the total revenue a business can expect to earn from a customer over the entire duration of their relationship.

How to calculate CLTV?

To calculate the CLTV, you can enter the requested data in the above calculator, and click on "Calculate" button.

Why is CLTV important?

CLTV helps businesses understand the long-term value of their customers, which is crucial for making informed decisions about marketing spend, customer acquisition costs, customer retention strategies, and overall business growth.

What are the factors influencing CLTV?

Key factors include purchase frequency, average order value, and the duration of the customer’s relationship with the business.

How can I improve my CLTV?

Improving CLTV involves increasing purchase frequency, boosting the average order value, enhancing customer retention, and delivering exceptional customer experiences to extend the customer lifespan.

Can CLTV help in forecasting future revenue?

Yes, CLTV can be also be used to forecast future revenues of the business.

What is the difference between CLTV and CAC?

CLTV measures the total revenue a customer brings over their lifetime, while Customer Acquisition Cost (CAC) measures the cost of acquiring a new customer. To calculate Customer Acquisition Cost, you can use our CAC Calculator.