Customer Lifetime Value Template
Calculate CLV and acquisition costs for better growth decisions.
What's Included:
- CLV calculator using average revenue, margin, and retention rate
- Customer acquisition cost (CAC) tracker by marketing channel
- LTV:CAC ratio dashboard with health indicator
- Cohort analysis showing how CLV evolves over customer lifetime
Available Formats:
Download Free Template
Enter your email to download this template instantly. We'll also send you tips on financial management.
Customer Lifetime Value (CLV) is the total profit a customer generates over their entire relationship with your business. When you know your CLV, you can make rational decisions about how much to spend on acquisition—because you know what each customer is worth over time, not just on their first purchase.
The LTV:CAC ratio is the single most important growth metric for subscription and recurring revenue businesses. A ratio of 3:1 means you earn $3 for every $1 spent acquiring a customer. Below 3:1, you are likely losing money on acquisition. Above 5:1, you might be leaving growth on the table by not investing enough in marketing. This template calculates and tracks the ratio over time.
How to Use This Template
Enter Customer Metrics
Input your average revenue per customer, gross margin percentage, and annual retention rate. The template calculates CLV using the standard formula.
Track Acquisition Costs
Enter total marketing and sales spend by channel along with the number of new customers acquired. The template calculates CAC per channel.
Evaluate the LTV:CAC Ratio
Review the ratio dashboard. A ratio below 3:1 suggests you are spending too much on acquisition; above 5:1 suggests you may be under-investing in growth.
Frequently Asked Questions
How do I calculate Customer Lifetime Value?
Simple CLV = (Average Revenue per Customer × Gross Margin) / Churn Rate. For example, if a customer pays $100/month at 70% margin with 5% monthly churn, CLV = ($100 × 0.70) / 0.05 = $1,400. This template handles the calculation with your actual data.
What is a good LTV:CAC ratio?
A ratio of 3:1 is considered healthy—you earn $3 in customer lifetime value for every $1 spent on acquisition. Below 3:1 signals unsustainable economics. Above 5:1 may mean you are under-investing in growth. This template tracks the ratio by channel so you can optimize spend allocation.
Related Financial Resources
Tired of manual spreadsheets?
FiscalInsights automates everything this template does—plus cash flow forecasting, expense categorization, and real-time insights.
Try FiscalInsights Free