Customer Lifetime Value
Gross Revenue = Avg Order Value × Purchases Per Year × Lifespan
Net Profit = Gross Revenue × (Profit Margin / 100)
CLV = Net Profit Per Customer
Max CAC = CLV × 0.3 (Recommended max customer acquisition cost)
Measure Long-Term Profit Per Customer in Your Ecommerce Business
Knowing your Customer Lifetime Value (CLV) helps you understand how much each customer is worth to your business over time—not just from a single purchase. With our CLV Calculator, Amazon and ecommerce sellers can estimate long-term revenue potential and optimize marketing spend accordingly.
What is CLV (Customer Lifetime Value)?
Customer Lifetime Value is the total revenue you can expect from a customer over the entire span of their relationship with your brand. It’s essential for calculating ROI on marketing, setting customer acquisition budgets, and projecting long-term profits.
Use this tool to factor in:
- Average order value (AOV)
- Purchase frequency
- Customer retention rate
- Profit margin
- Customer lifespan
Get instant insights into your CLV, gross margin contribution, and profitability.
How to Use the CLV Calculator
- Enter your Average Order Value (AOV)
- Input Purchase Frequency (per month or year)
- Add your Customer Retention Rate
- Set Profit Margin and Customer Lifespan (in years)
- Hit Calculate to get your Customer Lifetime Value
Our tool will also calculate:
- Gross CLV (before profit margin)
- Net CLV (actual profit)
- Indicators for whether your CAC (Customer Acquisition Cost) is healthy based on your CLV
Why CLV Matters for Amazon & Ecommerce Sellers
✅ Understand your true customer value
✅ Optimize ad spend and budgets
✅ Justify higher CAC for high-LTV customers
✅ Strategize retention, subscriptions, and loyalty programs
✅ Predict long-term growth and scalability
Whether you sell through Amazon FBA, Shopify, eBay, or Walmart, knowing your CLV is critical to long-term profitability.
Who Should Use This Tool?
- DTC Ecommerce Brands tracking retention and repurchase behavior
- Amazon Private Label Sellers using email & remarketing funnels
- Marketing agencies calculating ROAS vs CLV for clients
- SaaS businesses analyzing long-term revenue from each user
- Subscription-based brands with recurring customer revenue
Maximize Customer Profitability with CLV Insights
Don’t just look at one sale—plan for long-term success. Use the Customer Lifetime Value Calculator to understand how much your customers are really worth and build strategies that scale.
