Calculate how much revenue a typical customer generates over their lifetime with your store. Use the LTV:CAC ratio output to evaluate whether your acquisition spend is sustainable.

Customer Behavior

Average order valueThe typical amount a customer spends per purchase.?

Purchase frequency (per year)How many times the average customer buys from you in a year.?

Average customer lifespanHow many years the average customer keeps buying from you.?

Economics

Profit marginPercentage of revenue left after all costs—used to calculate net LTV.? Optional

Customer acquisition cost (CAC)What you spend on average to acquire a single customer.? Optional

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Quick Tips

LTV is why subscription businesses can afford high CAC. A one-time buyer at $50 is worth $50. A subscriber buying 12 times a year is worth $600 — totally different acquisition math.

Even 1 extra repeat purchase can completely change your unit economics. If CAC is $30 and profit per order is $20, one purchase loses money — but two purchases makes it profitable.

Focus on increasing purchase frequency before increasing AOV. It's easier to get an existing customer to buy again than to convince them to spend more per order.

Email marketing is the highest ROI channel for improving LTV. Post-purchase flows, win-back sequences, and loyalty campaigns cost almost nothing compared to paid acquisition.

Customer LTV Calculator

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