Customer Lifetime Value Calculator
Calculate your CLV and see how increasing repeat purchases can dramatically boost the lifetime value of every customer.
Customer Lifetime Value (CLV) is the total revenue a business can expect from a single customer over their entire relationship. Formula: AOV × Purchase Frequency × Customer Lifespan. Target CLV:CAC ratio: 3:1 or higher.
CLV = Average Order Value × Purchase Frequency × Customer Lifespan
Source: Shopify
Your Customer Metrics
Your Customer Lifetime Value
Enter your metrics to calculate customer lifetime value.
How SMS Increases Customer Lifetime Value
More Repeat Purchases
Post-purchase SMS with personalized offers brings customers back more often.
Stronger Relationships
Two-way SMS conversations build loyalty and extend customer lifespan.
Higher Order Values
Smart upsells and cross-sells increase AOV on every purchase.
CLV Calculator FAQ
How do I calculate customer lifetime value for my store?
Use the formula: CLV = Average Order Value × Purchase Frequency × Customer Lifespan. For example, if your AOV is $75, customers buy 4 times per year, and stay for 3 years: $75 × 4 × 3 = $900 CLV.
What is a good CLV:CAC ratio for ecommerce?
A healthy CLV:CAC ratio is 3:1 or higher, meaning each customer should be worth at least 3x what you spent to acquire them. Ratios below 2:1 indicate you're likely losing money on customer acquisition.
What is the average CLV by industry in ecommerce?
CLV varies by industry: online clothing averages $1,000-$1,800, skincare/beauty around $1,200, and subscription businesses can reach $2,000+. Your CLV depends heavily on your specific AOV, purchase frequency, and retention.
How does purchase frequency impact CLV?
Purchase frequency directly multiplies your CLV. Increasing frequency from 2 to 4 purchases per year doubles your CLV. This is why retention and repeat purchase strategies (like SMS marketing) are so powerful.
How does customer retention affect CLV?
Retention extends customer lifespan, exponentially boosting CLV. Doubling lifespan from 2 to 4 years doubles CLV. A 5% increase in retention can increase profits by 25-95% since you're not paying acquisition costs again.
How can I increase CLV for my Shopify store?
Focus on three levers: increase AOV (upsells, bundles), boost purchase frequency (SMS/email marketing, loyalty programs), and extend lifespan (excellent service, personalization). SMS post-purchase upsells directly impact all three.
Customer Lifetime Value Formulas
Basic CLV Formula
Example: $75 × 4 orders/year × 3 years = $900 CLV
CLV:CAC Ratio
Target: 3:1 or higher for sustainable growth.
Annual Customer Value
Measures yearly revenue per customer relationship.
Net CLV
True profit per customer after acquisition spend.