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How to use Customer Lifetime Value Calculator

Enter your average order value, purchase frequency per year, customer lifespan, and gross margin percentage, and the tool calculates the customer lifetime value.

Frequently asked questions

How is customer lifetime value calculated?

LTV = Average Order Value × Purchase Frequency (per year) × Customer Lifespan (years) × Gross Margin %.

Why does CLV matter?

CLV tells you how much revenue a customer generates over time, so you can set a sensible customer acquisition cost (CAC) budget.

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