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Business & eCommerceGenerated accuracy model review: 2026-05-06
Customer Lifetime Value accuracy and testing
This page documents how Calwarden builds trust for this calculator: source notes, regression-style default tests, limitations, assumptions, unit handling, rounding, and visible change history.
Formula source
- CLV = Avg Order Value * Purchase Frequency * Lifespan.
Test cases
Default input regression check
Generated from the checked-in default inputs and calculate function.
Inputs
- Avg Order Value: $50
- Orders Per Year: 4
- Customer Lifespan: 3 Years
Expected outputs
- Lifetime Value (Revenue): $600.00
- Annual Value: $200.00
Known limitations
- This page documents the checked-in calculator logic and does not certify results for every real-world edge case.
- Use the result as a planning estimate unless the calculator page states a stricter purpose.
Assumptions
- This is a simple revenue-based CLV model, not a predictive or margin-adjusted one.
- Average order value, purchase frequency, and lifespan are assumed to stay stable over the modeled period.
- Inputs should be positive values drawn from the same customer segment or average cohort.
Unit handling
- Avg Order Value accepts values in $.
- Orders Per Year accepts numeric values.
- Customer Lifespan accepts values in Years.
- Lifetime Value (Revenue) is displayed as currency.
- Annual Value is displayed as currency.
Rounding rules
- Number displays use up to 2 decimal places in the calculator UI.
- Currency outputs are displayed with standard US dollar formatting.
Version history
1.0.0 - 2026-05-06
Generated accuracy and testing page from the current clv-calculator calculator definition.
Change log
2026-05-06
Published default regression test documentation and metadata fallbacks for Customer Lifetime Value.
Calculator transparency
Accuracy pages are generated from checked-in calculator definitions and can be upgraded with curated review metadata over time.