Customer Lifetime Value Calculator

Finance Updated 16 Jun 2026

Customer Lifetime Value Calculator is a financial calculator that helps you calculate customer lifetime value values from your input data. The formula used is: Annual Revenue = Avg Order Value × Orders/Year\nLifetime Revenue = Annual Revenue × Customer Lifespan\nLTV = Lifetime Revenue × Gross Margin / 100. Enter monetary values in your local currency. Enter interest rates as plain numbers (e.g. enter 5 for 5 %).

Formula

Annual Revenue = Avg Order Value × Orders/Year Lifetime Revenue = Annual Revenue × Customer Lifespan LTV = Lifetime Revenue × Gross Margin / 100

Example Calculation

Inputs
  • Average Order Value: 5000
  • Orders Per Year: 4
  • Customer Lifespan (Years): 3
  • Gross Margin (%): 40

Suppose you enter: Average Order Value (PKR) = 5000, Orders Per Year = 4, Customer Lifespan (Years) = 3, Gross Margin (%) = 40. The calculator applies the formula (Annual Revenue = Avg Order Value × Orders/Year\nLifetime Revenue = Annual Revenue × Customer Lifespan\nLTV = Lifetime Revenue × Gross Margin / 100) and shows all output values below. Change any input field to immediately see how the result changes.

Frequently asked questions

What is the Customer Lifetime Value?
The Customer Lifetime Value Calculator is a financial calculator that helps you calculate customer lifetime value values from your input data. Enter monetary values in your local currency. Enter interest rates as plain numbers (e.g. enter 5 for 5 %).
When should I use this calculator?
Use this calculator whenever you need a quick, accurate result for customer lifetime value values from your input data without working through the arithmetic manually.
What units should I enter?
Enter monetary values in your local currency. Enter interest rates as plain numbers (e.g. enter 5 for 5 %).
How accurate are the results?
Assumes constant rates, no additional fees, and no tax unless stated. Actual outcomes vary with market conditions.
How do I interpret the result?
Compare against your financial goals or market benchmarks. A higher figure may mean greater cost or greater return depending on context.
How can I verify the calculation manually?
Use the displayed formula and work through the numbers step by step. If your manual result differs slightly, check rounding and unit conversions first.
Can I use this for planning and budgeting?
Yes. Run best-case, expected, and worst-case inputs to compare outcomes and make safer planning decisions.