What is customer lifetime value (LTV)?

This calculator estimates lifetime gross profit: average order value × purchases per year × customer lifespan × gross margin. It excludes acquisition costs and overhead. We’d use it as a planning estimate, not an amount you can safely spend to acquire every customer.

What's a good LTV:CAC ratio?

Compare estimated lifetime gross profit with customer acquisition cost (CAC), using compatible customer groups and periods. A ratio of 1:1 leaves nothing from that gross profit for overhead. A higher ratio alone does not justify more spend; cash timing and repeat-purchase assumptions still matter.

How do I improve customer lifetime value?

We’d look at why customers return, how often they buy, and what remains after product costs. Test a relevant reorder reminder, a useful bundle, or a better post-purchase experience, then check actual repeat purchases and margin.

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

$106

Estimated gross profit across the customer relationship, before acquisition costs and overhead.

What we’d check next

We’d compare this with acquisition cost and how long repeat purchases take to pay it back.

View chart and context

Simple LTV

$106

$0$500

Advanced LTV

$96

Present Value LTV

$83

Values update as you type.

LIFETIME VALUE BREAKDOWN

Your Results

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.

You vs. Industry Average

Your revenue LTV

Industry Average

Ecommerce median

Compared on revenue per customer, because published LTV benchmarks are revenue figures. Your headline LTV above is gross profit, after margin.

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SEE HOW YOU COMPARE

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More things we’d check

We’d use observed repeat purchases and a realistic customer lifespan for this estimate.

We’d compare acquisition cost with the gross profit the customer brings back, including how long that takes.

We’d review the emails after the first order.

Read the email flows guide

FAQ

Frequently asked questions

Common questions about customer lifetime value and retention

GLOSSARY

Learn These Key Metrics

Customer Lifetime Value

LTV

The total revenue a business expects to earn from a single customer over the ent...

Customer Retention Rate

CRR

The percentage of customers who remain active over a specific time period....

Customer Acquisition Cost

CAC

The total cost of acquiring a new paying customer, including all marketing and s...

Average Order Value

AOV

The average dollar amount customers spend per order/transaction....

Gross Margin

The percentage of revenue remaining after subtracting the cost of goods sold (CO...

Browse all glossary terms

Customer lifetime valueExample

2-year model · Gross profit

$300

Modeled value per customer

Purchases over 2 years6LTV to acquisition cost6.0×

$100 average order · 3 purchases/year · 50% gross margin · $50 acquisition cost. No retention or discount adjustment.

Illustrative example · Sample inputs, not your results.

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ROAS Calculator

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Conversion Calculator

Model how better conversion rates grow customer value.

Model conversion improvements

FOUND YOUR NUMBER

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LTV Calculator

Customer Value Inputs

Customer Lifetime Value

Your Results

How you stack up

You vs. Industry Average

Unlock Your Industry Benchmark

Frequently asked questions

Learn These Key Metrics

Keep going

Break-Even Calculator

ROAS Calculator

Conversion Calculator

Ready to grow your LTV?

Customer Lifetime Value Report

Results

Industry Comparison

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