Annual revenue per customer
$960.00
Business Metrics
Customer Lifetime Value Calculator
Estimate annual customer revenue, annual gross profit per customer, and total lifetime value from a simple unit-economics model.
Annual gross profit per customer
$652.80
Customer lifetime value
$2,284.80
Frequently asked questions
How is customer lifetime value calculated here?
This calculator multiplies average revenue per purchase by purchase frequency to estimate annual revenue per customer, applies gross margin to estimate annual gross profit, and then multiplies that by customer lifespan.
Why use gross margin instead of revenue alone?
Revenue-only CLV can overstate customer value. Gross margin gives a more realistic view by keeping the estimate tied to profit before fixed operating costs.
Does this include discount rate or acquisition cost?
No. This version is a clean gross-profit CLV model. Customer acquisition cost and discounted cash-flow assumptions should be modeled separately when needed.
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