Customer Lifetime Value Calculator

How it is calculated

Order value × annual order frequency × lifespan × gross margin / 100

Interpret the result in context.

This is an undiscounted scenario estimate of gross contribution, before acquisition cost and overhead. It is not a forecast or a guarantee. Keep the order frequency and lifespan units consistent and compare several plausible assumptions.

Keep the source, collection period and inclusion rules alongside the result. An arithmetic calculation cannot establish whether the data represents your customers or whether a change was caused by a particular initiative.

Choose the next question.

Use the result to decide what to investigate, then connect it to customer comments and operational observations. A single metric cannot describe the entire experience.