Customer Lifetime Value Calculator

Calculate how much your customer worth for their lifetime

Customer Lifetime Value


Customer Lifetime Value Calculator

The formula to calculate customer lifetime value can be tedious. When you are working on a lot of things, it is possible to miss out some signs. To cover this, the calculator does not need you to enter any signs. In business, losing a second is losing money. One way you will lose seconds and minutes is by using the tradition methods in calculation. You will spend a lot of time getting it wrong and redoing it all over. This calculator is meant to save you time. Get the value you are calculating in less than 5 seconds. That saves you a lot of time to attend to other things.

What is customer lifetime value?

This is the amount of money you expect a customer to spend in your business. This is the amount to be spent for as long as they remain your customers. Calculating customer lifetime value acts as a motivation. If you find out that your customer is spending a lot in your business, you will work harder. You will do everything possible to attract more customers. You also get to know how much you can spend to win more customers.

Details to enter in this calculator

As I said before, mathematical signs can get you mixed up. You might subtract where you are supposed to make addition. Therefore, this calculator needs you to enter a few figures. This includes average order value, number of orders, retention time and markup. Retention time refers to the number of years a customer will use your shop.

How to calculate customer lifetime value calculator

This easily accessible tool in ecommerce is very helpful. To calculate the value is easy. You will enter the required details and click the calculate option. The value will be displayed clearly.

Importance of calculating customer lifetime value

You get to know how much you can spend on attracting more customers. Getting new customers will not happen miraculously. You will have to invest. This could be through pay-per-click adverts and other methods to market your shop. If you spend without knowing how much customer value you get is risky.

It also gives you a view of the direction your business is taking. Knowing whether your business is performing well or not makes you thing. You know what you are doing wrong and change that.


Calculating the customer lifetime value is very beneficial. It helps you set your priorities right and be more focused. Using customer lifetime value calculator is very convenient even when you are tired. There is less needed of you because the calculator does everything. With the high competition in the ecommerce world, being unique is helpful. The smallest details that you do not think matter are very important. They will help you stay on top of the competition. Starting by using this calculator is huge step. You will save a lot of time and have enough time to concentrate on other things. It is a tool that considers every second wasted.

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