Answers

CLV Calculator answers

CLV is the total profit or revenue you expect from a customer over the whole relationship. It helps you decide how much to spend on acquisition and retention.

Margin, break-even, ROI, ROAS, CAC, CLV and commission formulas are the same in the US, UK, EU, Australia, Canada and India. What changes is the currency and whether GST, VAT or sales tax sits inside the price you typed. Say which costs you included before you compare two campaigns or two prices.

A worked check

Sell at 100, spend 60 on the product and 10 on ads, and profit is 30. Margin is 30%. ROAS on the ads is 100 / 10 = 10, which can look excellent while the margin is ordinary. Add 20% VAT on a VAT-exclusive price and the customer pays 120, but that 20 is not profit.

01. What is Customer Lifetime Value?

CLV is the total profit or revenue you expect from a customer over the whole relationship. It helps you decide how much to spend on acquisition and retention.

Open the CLV Calculator and change one number. You can see which result moves. The country menu changes the currency symbol. The formula stays the same.

02. How do I calculate CLV simply?

Multiply average order value, purchase frequency per year and average customer lifespan in years. Subtract cost of goods if you want profit-based CLV.

Open the CLV Calculator and change one number. You can see which result moves. The country menu changes the currency symbol. The formula stays the same.

03. Why CLV matters for subscription and D2C brands?

If CLV is Rs 5,000, spending Rs 4,500 to acquire a customer loses money. Healthy businesses keep CAC well below CLV with room for ops cost.

Open the CLV Calculator and change one number. You can see which result moves. The country menu changes the currency symbol. The formula stays the same.

04. Should I use revenue or gross profit for CLV?

Gross profit CLV is safer for decisions because it accounts for product cost. Revenue CLV overstates what you can spend on marketing.

Open the CLV Calculator and change one number. You can see which result moves. The country menu changes the currency symbol. The formula stays the same.

05. How churn affects CLV?

Higher churn shortens average lifespan and drops CLV. Improving repeat rate often beats only chasing new customers.

Open the CLV Calculator and change one number. You can see which result moves. The country menu changes the currency symbol. The formula stays the same.

06. Can CLV change by cohort?

Yes. Customers acquired in a sale season may buy less later. Track cohorts in your analytics, not one blended average only.

Open the CLV Calculator and change one number. You can see which result moves. The country menu changes the currency symbol. The formula stays the same.

07. Is CLV from this tool exact for my brand?

It is a formula-based estimate from your inputs. Real behaviour varies. Not a substitute for detailed analytics or finance review.

Open the CLV Calculator and change one number. You can see which result moves. The country menu changes the currency symbol. The formula stays the same.

08. Is the CLV calculator free to use?

Yes. No signup needed for founders and marketing teams.

Open the CLV Calculator and change one number. You can see which result moves. The country menu changes the currency symbol. The formula stays the same.

Keep going

These pages explain the arithmetic. They are not a loan approval, tax filing, insurance quote or investment recommendation.