Sales Funnel Customer Lifetime Value Calculator
Estimate customer lifetime value from your funnel conversion rates, average order value, purchase frequency and customer lifespan.
Overview
This sales funnel customer lifetime value calculator helps you estimate how much an average customer and lead may be worth based on your monthly visitors, funnel conversion rates, average order value, purchase frequency and customer lifespan. It is useful for reviewing acquisition efficiency and setting realistic marketing targets.
How it works
The calculator first estimates how many leads and new customers your funnel creates each month using your conversion rates. It then calculates customer lifetime value by multiplying average order value by purchases per year and average customer lifespan in years. Lead value is estimated by applying the lead to customer conversion rate to customer lifetime value. Finally, monthly cohort lifetime revenue multiplies monthly new customers by customer lifetime value to show the long-term revenue potential of customers acquired in a typical month.
How to use this calculator
- 1Enter your monthly website visitors.
- 2Add your visitor to lead conversion rate.
- 3Add your lead to customer conversion rate.
- 4Enter your average order value.
- 5Enter how many times the average customer buys each year.
- 6Enter the average number of years a customer stays active and review the estimated values.
Example Calculation
Monthly website visitors
10000
Visitor to lead conversion rate
5%
Lead to customer conversion rate
20%
Average order value
$120
Purchases per customer per year
4
Average customer lifespan
3
Customer lifetime value
$1,440
With 10000 monthly visitors, a 5% visitor-to-lead rate and a 20% lead-to-customer rate, the funnel generates about 100 new customers per month. If each customer spends 120 per order, buys 4 times per year and stays for 3 years, estimated customer lifetime value is 1440 and the monthly acquired customer cohort represents about 144000 in lifetime revenue.
Frequently asked questions
What does this calculator estimate?
It estimates customer lifetime value, lead value, monthly new customers and the lifetime revenue represented by customers acquired in a typical month.
Is customer lifetime value the same as profit?
No. This calculator estimates revenue per customer over time, not profit. It does not subtract product costs, marketing spend, overhead or refunds.
How is lead value calculated?
Lead value is estimated by multiplying customer lifetime value by your lead-to-customer conversion rate.
Why does monthly cohort lifetime revenue look large?
It reflects the total expected revenue over the full customer lifespan for customers acquired in one month, not revenue collected in that same month.
Should I use average order value or average revenue per customer?
Use average order value if you also enter purchase frequency. If you already know annual revenue per customer, make sure your inputs do not double count repeat purchases.
Can I use this calculator for subscriptions?
Yes. You can approximate subscription value by using annual payments or renewal payments as your order value and the expected number of purchases per year.
Explore Related Calculators
Assumptions and warnings
Assumptions
- Results are revenue estimates and do not subtract refunds, costs, margins, fees or taxes.
- Conversion rates, order value and purchase frequency are assumed to stay consistent over the period used.
- Customer lifetime value is calculated using average order value multiplied by annual purchase frequency and average customer lifespan.
- Monthly cohort lifetime revenue estimates the long-term revenue from customers acquired in one month, not cash collected immediately.
Warnings
- This calculator provides an estimate only and is not financial advice.
- Use your own business data where possible, as small changes in conversion rates can significantly affect the result.