TrendMetric

[ Free calculator ]

Customer lifetime value calculator

Simple historic CLV: average order value × orders per year × years × gross margin. Add CAC to see what is left after you paid to acquire the customer.

Calculator

CLV = AOV × Orders per year × Lifespan years × Gross margin

CLV is only as honest as the retention you enter. A one-and-done dropshipping SKU should use a short lifespan. A replenishable brand can use more years.

Do not paste a CLV into an ad account and call it a forecast. TrendMetric Forecast is a separate catalog demand range, not this spreadsheet identity.

Product documentation: Customer Lifetime Value Calculator feature.

[ F.A.Q ]

Questions

Should I use revenue LTV or margin CLV for ads?+

Use margin CLV (and LTV after CAC) when you are deciding what you can pay to acquire a customer. Revenue LTV overstates cash if COGS is high.

How do I pick lifespan?+

Use how long your buyers actually repurchase, not a hopeful number. If you only have a few months of data, keep lifespan short.

Is this the churn-rate CLV formula?+

Not the 1/churn version. This page uses explicit years of buying. If you prefer churn, convert it: lifespan ≈ 1 ÷ annual churn.

Can I run this without an account?+

Yes. Calculators are unlimited. One-shot catalog previews on this hub are separate.