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Customer Lifetime Value Calculator
What one customer is worth over the whole relationship, in plain numbers.
Customer lifetime value
How it works
Customer lifetime value = average order value × purchases per year × customer lifespan Yearly value = average order value × purchases per year
Worked example: an average order of ₹1,500, bought 4 times a year, over a 3-year relationship gives ₹1,500 × 4 × 3 = ₹18,000. The yearly value is ₹6,000, and the lifespan is what turns it into a lifetime figure.
Frequently asked questions
Is this profit, or revenue?
Revenue, as calculated here. For profit, multiply by your gross margin: at a 40% margin, an ₹18,000 lifetime value is ₹7,200 of gross profit over the relationship.
How do I estimate lifespan?
Look at how long customers actually stay, on average, before they stop buying. If you do not have that data yet, try 2 years and 5 years side by side — the range is more honest than a single guess.
Why does this number matter?
Because it sets a ceiling on sensible acquisition spend. Paying ₹500 to win a customer worth ₹18,000 is a different decision from paying ₹500 to win one worth ₹600.
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