Customer Lifetime Value Calculator
Year | Revenue ($) | Gross Profit ($) | Present Value of GP ($) | Cumulative CLV ($) |
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Understanding the long-term value of your customers is paramount for sustainable business growth. Our new Free Customer Lifetime Value (CLV) Calculator provides a robust, data-driven approach to project and visualize the financial contribution of each customer over time. This isn’t about simple projections; it’s about applying sound financial principles to your customer base.
This powerful utility allows you to input key financial metrics: your revenue per customer, your gross margin percentage, and your annual net retention rate (NRR). A default discount rate of 10% is provided, but you can adjust it to reflect your specific cost of capital, ensuring the analysis aligns with your financial strategy.
Upon calculation, the tool delivers two critical outputs. First, you’ll see a dynamic graph that visually represents the cumulative CLV over several years. This provides an immediate, intuitive understanding of how customer value accrues. Second, a detailed table breaks down the calculations year-by-year. For each year, you’ll find the projected revenue, gross profit, the present value of that gross profit (accounting for the time value of money via discounted cash flow analysis), and the cumulative lifetime value up to that point. This granular view allows for precise financial planning and strategic decision-making.
Built to run entirely in your browser using vanilla JavaScript and HTML, this tool is fast, private, and requires no external APIs. It’s a straightforward, powerful resource for financial analysts, marketers, and business leaders who need to quantify customer value accurately. Use this free CLV calculator to inform your acquisition strategies, optimize retention efforts, and make more profitable business decisions.