Enter the customer value per year or time period and the average customer life span into the calculator to determine the customer lifetime value.

- SaaS Lifetime Value Calculator
- LTV Calculator (Loan to Value %)
- EOQ Calculator (Economic Order Quantity)

## Customer Lifetime Value Formula

The following formula is used to calculate the customer lifetime value.

CLTV = CV * ALS

- Where CLTV is the customer lifetime value
- CV is the customer value per year or time period
- ALS is the average life span in years or time frequency

## FAQ

**What is a customer lifetime value?**

A customer lifetime value is the total value of a customer on average over the lifespan of that customer. In other words, how much value can be extracted from a customer over the life of that customer. In this case the life of the customer is the time spent purchasing and using a service or good/

**What is the average value per customer?**

The average value per customer is typically measured as the total money spent by the customer over a given time period.

## Customer Lifetime Value Example

The following is an example of how to calculate the customer lifetime value.

How to calculate customer lifetime value?

**First, calculate the average customer value.**For this example, we will be using the average customer value over a 1 year period. After analysis we find this to be $100.00.

**Next, determine the average lifespan.**Determine the average length of time a customer spends with the product. For this example we assume we have loyal customers and they stay on average for 10 years.

**Finally, calculate the CLTV.**Using the formula above, we find that the CLTV is equal to $100.00/year * 10 years = $1,000.00.

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