What is customer lifetime value (LTV)?

LTV is the total gross margin a customer generates over their full relationship with your brand — AOV × purchase frequency × lifespan × margin. It sets the ceiling on how much you can profitably spend to acquire a customer.

What's a good LTV:CAC ratio?

A healthy LTV:CAC ratio is 3:1 or higher, meaning your customer lifetime value is at least 3x your customer acquisition cost. 1:1 means you're barely breaking even. 5:1 or higher means you have room to scale aggressively.

How do I improve customer lifetime value?

Increase LTV by: improving retention with loyalty programs, email marketing, and better customer experience; increasing purchase frequency through reorder campaigns; and boosting AOV with upsells and bundles.

How accurate are these calculations?

Our calculators use industry-standard formulas and are designed for directional accuracy. Results depend on the quality of your input data. For precise financial planning, we recommend validating results with your accountant or financial team.

Is this really free? What's the catch?

Yes, completely free with no hidden costs. We offer these tools to help ecommerce brands succeed. We may occasionally share relevant insights via email if you opt in, but the tools remain free forever.

Is my data private and secure?

Your calculations run in your browser, and we don't store the numbers you type unless you choose to send them — by unlocking a benchmark, emailing yourself a report, or contributing an anonymous data point. We do record anonymous usage events, which tool was used rather than what you entered. The AI tools work differently: your store URL and the report or concepts we generate are saved so we can support you and so your share link keeps working. We never access your Shopify admin, your customer data, or any private account information.

LTV Calculator

How Much Is Each Customer Really Worth?

A $50 first order might be worth $320 over time. Know your customer lifetime value (LTV) to set smarter ad budgets.

Customer Value Inputs

Average Order Value

Purchase Frequency (per year)

Customer Lifespan (years)

Gross Margin (%)

Annual customer revenue$213

Lifetime gross revenue$425

Optional: Advanced Calculations

Retention Rate (%)

Discount Rate (time value of money)

Customer Acquisition Cost

Customer Lifetime Value

Simple LTV

$106

$0$500

Advanced LTV

$96

Present Value LTV

$83

Values update as you type.

LIFETIME VALUE BREAKDOWN

Your Results

Customer Lifetime Value

$106

What each customer is worth across their full relationship — the budget ceiling for acquisition.

Annual Gross Profit

$53

Monthly Gross Profit

Total Lifetime Purchases

INDUSTRY BENCHMARK

How you stack up

Directional D2C planning band, not a measured median. Lifetime value needs a repeat-purchase window nobody here has measured consistently, so this is a chosen anchor. Treat it as a starting point and compare against your own cohort data. Benchmarks are directional, not a guarantee; use them as a comparison point alongside your own historical data.