Customer Lifetime Value Calculator

CLV is the total margin a customer generates over the whole time they remain a customer. For a restaurant it is the average check times the number of visits per year times the margin, multiplied by how many years the relationship lasts. It reframes a customer from a single bill into a multi-year asset, which is the perspective that justifies spending on loyalty and retention.

Visits per year = visit frequency per month x 12. Annual margin = average check x visits per year x margin %. CLV = annual margin x customer lifespan in years. The calculator works on margin, not revenue, so the result is the real profit a loyal customer is worth, not just their total spend.

It compares what a customer is worth (CLV) to what they cost to acquire (CAC). A widely used benchmark is a CLV/CAC ratio of at least 3:1; below that, acquisition is too expensive relative to value, and far above it you may be under-investing in growth. The ratio is the single number that tells you whether your acquisition spending is sustainable.

Using the common 3:1 target, the maximum sustainable CAC is CLV divided by 3. If a regular is worth €1,512 in lifetime margin, you can comfortably spend up to about €504 to acquire one and still keep a healthy ratio. Knowing this ceiling stops you turning down profitable acquisition channels out of caution.

Three levers move CLV: spend per visit (upselling), visit frequency (loyalty programmes, reasons to return) and lifespan (consistency and relationship). Because the three multiply together, small improvements in each compound. Model the effect of each lever in the calculator to see which one moves your CLV the most.