Customer Lifetime Value Calculator: LTV, CAC and Payback
Calculate total value from long-term customer relationships.
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Customer lifetime value is the yearly revenue per customer, after gross margin, times how long the customer stays. Subtract acquisition cost to see the profit. This calculator also returns LTV to CAC and payback period.
Clientell AI, the AI agent for Salesforce admins, builds the customer revenue and retention report behind these inputs in Salesforce from a plain-English request. See the report and dashboard builder
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The Customer Lifetime Value Calculator helps businesses determine the total revenue a customer generates throughout their relationship with your company. This metric is crucial for optimizing marketing spend, customer acquisition costs, and retention strategies.
- Step 1: Enter your average monthly revenue per customer in dollars
- Step 2: Input your gross margin percentage (typically between 10-80%)
- Step 3: Specify your annual customer churn rate percentage
- Step 4: Enter the average customer lifespan in years
- Step 5: Add your customer acquisition cost (CAC) in dollars
- Step 6: Include any annual upsell revenue per customer
- Step 7: Click 'Calculate CLV' to see your results
- Step 8: Analyze your CLV, net profit per customer, and retention rate
SaaS Business Model
Subscription-based software companies use CLV to optimize pricing and retention
E-commerce Customer Analysis
Online retailers use CLV to segment customers and personalize marketing
Sales Team Compensation
Aligning sales incentives with customer lifetime value rather than initial deal size
This calculator determines the total value a customer generates over their relationship with your business. It first calculates monthly margin per customer by applying your gross margin percentage to monthly revenue. This is annualized and combined with upsell revenue, then multiplied by the expected customer lifespan. Customer acquisition cost is subtracted to give the net lifetime value.
Assumptions & Limitations
- Gross margin remains constant throughout the customer lifespan
- Monthly revenue per customer stays stable (no growth or decline modeled)
- Upsell revenue is assumed to be a flat annual amount
- Churn rate is used to derive retention rate but lifespan is entered separately
- Acquisition cost is treated as a one-time expense per customer
| Metric | Industry | Benchmark Value | Source |
|---|---|---|---|
| Average CLV | SaaS | $4,000 - $6,500 | Clientell 2026 Customer Metrics Study |
| Average CLV | E-commerce | $250 - $700 | Clientell 2026 Customer Metrics Study |
| Average CLV | Financial Services | $9,500 - $14,000 | Clientell 2026 Customer Metrics Study |
| Average CLV | B2B Technology | $20,000 - $30,000 | Clientell 2026 Customer Metrics Study |
Questions people ask
How do you calculate customer lifetime value?
Multiply annual revenue per customer by gross margin, then by the average years a customer stays. Subtract customer acquisition cost for net value.
What is a good LTV to CAC ratio?
Many SaaS teams use 3 to 1 as a rule of thumb. Check it against your margins and cash needs, since the right ratio depends on your business.
What is CAC payback period?
The months of gross profit from a customer it takes to repay the cost of winning them. Shorter payback frees cash sooner.
Where do I get the inputs for the CLV calculation?
From your CRM: revenue per account, customer start and end dates, and sales and marketing spend per new customer.
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