Customer lifetime value calculator: what is a customer worth?

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Results are estimates to guide decisions, not financial advice. Your numbers stay in your browser.

The number behind every growth decision

Lifetime value tells you how much a customer is really worth. Compared with your cost to acquire a customer (CAC), it shows whether growth is building value or burning cash.

Lifetime value (gross profit) = order value × purchases a year × years × margin
CAC = marketing and sales spend ÷ new customers
Payback months = CAC ÷ monthly gross profit per customer

Reading your ratio

Below 1: each customer costs more than they bring in.
1 to 3: profitable, but little room for growth spend.
3 or more: a widely used rule of thumb for a healthy business; you can usually invest more in growth.

Questions

Why use gross profit, not revenue?

Revenue overstates what a customer is worth. Gross profit is what is left to pay for marketing, salaries and profit.

What if I do not know how long customers stay?

Use a cautious guess, such as 2 years, and test a range. Even a rough figure is better than judging marketing on the first sale alone.

What counts as acquisition spend?

Everything spent to win new customers: ads, agency fees, sales salaries and commissions, tools and events.

Is my data saved?

No. The calculation runs in your browser. Nothing is sent unless you choose to email yourself the result.

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