Simple Customer Lifetime Value
Calculate simple customer lifetime value using Average order value, Purchases / year, Customer lifespan (years), Gross margin %. See the method, result interpretation, practical checks and related calculators in one place.
Formula / method
aov*freq*years*margin/100
How to use
Use the rate, time period, fees and cash-flow assumptions that match the real quote or account you are evaluating.
What this calculator answers
The Simple Customer Lifetime Value uses Average order value, Purchases / year, Customer lifespan (years), Gross margin % to calculate the requested result. The core method is aov*freq*years*margin/100. This makes the assumptions visible so you can check whether the inputs match your situation.
How to get a useful result
Use the rate, time period, fees and cash-flow assumptions that match the real quote or account you are evaluating.
How to interpret it
Treat the result as an estimate. Taxes, lender rules, compounding conventions, fees and timing can change the real amount.
Before relying on the number
Recheck unusual inputs, confirm units and compare the result with any official quote, statement, specification or rule that applies to the real decision. Small changes in rates, time periods or measurements can materially change some results.