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Customer LTV Calculator India 2026 โ€“ Lifetime Value & CLV

Use this free Customer Lifetime Value Calculator in India to find what each customer is worth over their entire relationship โ€” and how much you can afford to acquire them.

Calculate how much each customer is worth over their full relationship with your business.

Customer Lifetime Value
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Annual Revenue/Customer
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CLV:CAC Ratio
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Net CLV (after CAC)
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Payback Period
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Lifetime Revenue
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Max Allowable CAC
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What is Customer Lifetime Value?

CLV is the total profit a business expects from a customer over their entire relationship. It guides decisions on acquisition spend, retention investment, and pricing.

Formula

Annual Revenue = AOV x Purchase Frequency
Simple CLV = Annual Revenue x Lifespan x Gross Margin%
Discounted CLV = Sum[Annual Margin / (1+Discount)^year]
CLV:CAC Ratio = CLV / Acquisition Cost

Examples

US SaaS โ€” $120 AOV, 4x/year, 3yr lifespan, 60% margin, $80 CAC

CLV: $778 | CLV:CAC: 9.7:1 | Net CLV: $698 | Payback: 2.4 months

India E-commerce โ€” Rs 2,500 AOV, 6x/year, 2yr lifespan, 40% margin, Rs 500 CAC

CLV: Rs 12,000 | Ratio: 24:1 | Net CLV: Rs 11,500 | Payback: 1.2 months

Example — United Kingdom

E-commerce: £80 AOV, 3 purchases/year, 4-year retention, 30% margin. CLV: £960 | Gross profit CLV: £288 | Max recommended CAC: £96

Why Use This?

CLV defines how much you can spend acquiring a customer and still profit. Most businesses underspend on acquisition because they underestimate CLV.

What is a good CLV:CAC ratio?
3:1 is the rule of thumb minimum. Below 3:1 means overspending on acquisition. Above 5:1 may mean underinvesting in growth.
How do I increase CLV?
Four levers: increase AOV (upsell), increase frequency (loyalty programs), extend lifespan (great service), improve margin (pricing or COGS).
Simple vs discounted CLV?
Discounted CLV applies a discount rate since future cash is worth less today. More accurate for finance decisions.
💡 Tip: Increasing customer retention by just 5% can increase profits by 25-95% (Bain & Company).