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Customer lifetime value (CLV) calculator

Calculate the total gross profit a customer leaves you and the most you can spend to acquire one.

Customer lifetime value
%

Customer lifetime value (gross profit)

900

Max acceptable CAC (CLV / 3)

300

How to use it

  1. 1Enter the average order value and orders per year.
  2. 2Add how many years a customer keeps buying and your gross margin.
  3. 3Lifetime value and the highest acceptable acquisition cost are calculated.

Frequently asked questions

Why does CLV matter?+

It shows how much you can spend on ads per customer; you can lose money on the first order and still grow profitably.

Why CLV / 3?+

A common rule for healthy growth is keeping acquisition cost below a third of lifetime value.

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