Why does gross margin matter?

Gross revenue isn't profit. A €1 000 customer with a 20% margin is worth less to you than a €500 customer at 60% margin.

What's a healthy CLV:CAC ratio?

3:1 is the standard rule of thumb. Below 1:1 you're losing money on every customer; above 5:1 you might be under-investing in growth.

How do I improve my CLV?

Three levers: increase order size (upsells), buy frequency (loyalty programs, automation), and retention years (great service + product). A CRM helps with all three.

CRM Business Hub

Free Tool

Customer Lifetime Value Calculator

Know what a customer is really worth before you spend on getting one

Calculate gross and net Customer Lifetime Value (CLV) in seconds — the number that should set your acquisition budget ceiling.

Learn more → CRM Business Hub

Loading tool...

If you don't know what a customer is worth, you're guessing every time you spend money to get one.

The Customer Lifetime Value (CLV) is the total profit you make from one customer over the entire time they buy from you. It's the single most important number for setting marketing budgets, evaluating channels, and deciding where to invest in retention.

This calculator gives you both the gross CLV (total revenue) and the net CLV (with your gross margin applied) in seconds.

Book a Demo

Quick — under 90 seconds

How to Use

Enter the average order value of a typical customer.
Enter how often they purchase per year.
Estimate how many years they typically stay with you.
Enter your gross margin to get the net CLV.

Use the result as a ceiling for your customer acquisition cost (CAC) — most healthy businesses target a CLV:CAC ratio of 3:1 or better.

Benefits

Net + gross at once — See both perspectives instead of just total revenue.

Margin-aware — Your real CLV is the part you keep — gross margin matters.

Set CAC limits — Anchor your acquisition spend to a number that makes sense.