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 (gross profit)
900
Max acceptable CAC (CLV / 3)
300
How to use it
- 1Enter the average order value and orders per year.
- 2Add how many years a customer keeps buying and your gross margin.
- 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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