Gross Profit Customer Lifetime Value Calculator
Estimate gross-profit customer lifetime value from purchases, frequency, retention years, and margin.
Gross Profit Customer Lifetime Value measurements
Enter your values, then calculate.
Result
How to calculate gross profit customer lifetime value
Estimate the gross profit expected from an average customer across the relationship.
How the calculation works
Average purchase value × annual purchase frequency × customer lifespan gives lifetime revenue; applying gross margin converts revenue to gross profit.
Example
A customer spending $85 six times per year for four years at 45% margin has an estimated gross-profit lifetime value of $918.
Frequently asked questions
Should operating expenses be included?
This result applies gross margin only; subtract service, support, and overhead costs for a contribution-profit view.
Gross Profit Customer Lifetime Value Calculator
Average purchase value × annual purchase frequency × customer lifespan gives lifetime revenue; applying gross margin converts revenue to gross profit.
Let's understand your gross profit customer lifetime value result.
Calculate a result above and this guide will help you interpret it using this calculator's own formula and explanation.
Pro Tips for Gross Profit Customer Lifetime Value
- Use cohort-specific retention when customer types differ.
- Compare lifetime value with acquisition cost on the same profit basis.
Common Gross Profit Customer Lifetime Value Mistakes to Avoid
- Using revenue as though it were profit can make acquisition spending appear more sustainable than it is.
When to Use This Calculator
Estimate the gross profit expected from an average customer across the relationship.