# Customer Lifetime Value Calculator

> Customer lifetime value calculator: compute CLV from gross contribution, churn, and CAC, with your LTV to CAC ratio. Free, runs in your browser, no signup.

- **Canonical URL:** https://boringtoolskit.com/customer-lifetime-value-calculator/
- **Category:** Seller & Business
- **Evidence level:** authored-methodology
- **Reviewed:** July 2026
- **Last verified:** 2026-09-20
- **Privacy:** Inputs and results stay in this browser unless the page clearly labels an external request.

## How it works

Annual gross contribution = average order value × purchases per year × gross margin. Approximate lifetime years = 1 ÷ annual churn. LTV = annual gross contribution × lifetime years. Planning CAC ceiling = LTV ÷ target LTV:CAC ratio.

## Worked example

$50 orders, four purchases per year, 60% margin, and 20% annual churn produce $600 modeled gross-contribution LTV and a $200 planning CAC ceiling at a 3:1 target.

## Assumptions

- Annual churn remains constant and greater than zero.
- Order value, frequency, and gross margin remain constant.
- The CAC result is a planning ceiling before overhead, payback timing, discounting, refunds, and cohort variation—not an ad bid.

## Common questions

### How does this customer lifetime value calculator calculate CLV?

CLV equals average order value × purchases per year × gross margin × (1 ÷ annual churn). It estimates gross-contribution lifetime value under a constant annual churn assumption.

### What is the customer lifetime value formula?

Annual gross contribution = average order value × purchases per year × gross margin. Customer lifetime years = 1 ÷ annual churn. CLV = annual gross contribution × lifetime years.

### How is the target CAC calculated?

The planning CAC ceiling equals CLV ÷ target LTV:CAC ratio. It is not an ad-bid recommendation because overhead, cash timing, uncertainty, and channel economics still matter.

## Related tools

- /subscription-churn-impact-calculator/
- /price-increase-impact-calculator/
- /profit-margin-markup-calculator/

## Sources

- [Marketing and sales](https://www.sba.gov/business-guide/manage-your-business/marketing-sales)

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*Local planning estimate. Verify current terms, rates, and policies before acting.*