Customer Lifetime Value (CLV)
How much a customer is worth over their lifetime.
CLV = average revenue × gross margin × average customer lifespan.
What you enter
- Avg revenue / customer / mo
- Gross margin
- Avg lifespan (months)
Worked example
With the default inputs:
- Avg revenue / customer / mo: $50
- Gross margin: 75%
- Avg lifespan (months): 24
| Customer lifetime value | $900.00 |
|---|---|
| Revenue per customer | $1,200.00 |