Skip to content

Customer Lifetime Value (LTV) Calculator

Estimate what a typical customer is worth from order value, how often they buy, how long they stay, and your margin.

Who this is for: Shop owners deciding how much they can spend to win a customer.By · How it works

Your numbers

$
%

Lifetime value (profit)

$180.00

Lifetime revenue
$450.00
Max CAC for 3:1
$60.00

Results are estimates for planning. Check important figures with a qualified professional.

Quick answer

The Customer Lifetime Value Calculator shows gross profit a customer brings over their lifetime. How it works: Lifetime revenue = order value × orders per year × years; LTV = lifetime revenue × gross margin. For example, with average order value of $45, orders per year of 4, and years as a customer of 2.5, the lifetime value (profit) is $180.00.

How to use the Customer Lifetime Value Calculator

  1. Enter average order value.
  2. Enter orders per year.
  3. Enter years as a customer.
  4. Enter gross margin.
  5. Read lifetime value (profit) and the breakdown. Use Share to send the exact numbers, or Print to save a PDF.

How it's calculated

  • Lifetime revenue = order value × orders per year × years
  • LTV = lifetime revenue × gross margin

Worked example

With average order value of $45, orders per year of 4, years as a customer of 2.5, and gross margin of 40 %:

Lifetime value (profit): $180.00. Lifetime revenue: $450.00.

Customer Lifetime Value questions

How do you calculate customer lifetime value (LTV)?

LTV = average order value × orders per year × years a customer stays × your profit margin. It estimates the profit one customer brings over time.

Should LTV use revenue or profit?

Profit. Revenue-based LTV looks bigger but hides fees and product costs, which can lead you to overspend on ads.

What is a good LTV to CAC ratio?

Around 3 to 1 or better is a common target. Below 1 to 1, you lose money on every new customer.