Business / Ecommerce
CLV Calculator
Estimate Customer Lifetime Value (CLV) to guide acquisition spend and retention strategy
Customer metrics
₹
yrs
%
Leave 0 for revenue-based CLV only
Customer lifetime value
₹0revenue-based CLV
How CLV is calculated
Revenue CLV = AOV × Purchases per year × Customer lifespan
Profit CLV = Revenue CLV × Gross margin %
Profit CLV = Revenue CLV × Gross margin %
Compare profit CLV to CAC — a healthy ecommerce business often targets LTV:CAC of 3:1 or higher.
Why use it
Detailed features
Retention value
Understand long-term value beyond first purchase.
Margin-aware
Optional gross margin for profit-based CLV.
CAC benchmark
Use with our CAC calculator for LTV:CAC ratio.
On the go
Also in the free Toolance Android app.
Frequently asked questions
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.
Multiply average order value, purchase frequency per year and average customer lifespan in years. Subtract cost of goods if you want profit-based CLV.
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.
Gross profit CLV is safer for decisions because it accounts for product cost. Revenue CLV overstates what you can spend on marketing.
Higher churn shortens average lifespan and drops CLV. Improving repeat rate often beats only chasing new customers.
Yes. Customers acquired in a sale season may buy less later. Track cohorts in your analytics, not one blended average only.
It is a formula-based estimate from your inputs. Real behaviour varies. Not a substitute for detailed analytics or finance review.
Yes. No signup needed for founders and marketing teams.