Customer Lifetime Value (LTV) Calculator

Know exactly what a customer is worth - so you can set smarter acquisition budgets, price your paid media with confidence, and scale profitably.

1
Average Order Value (AOV) ? Total revenue ÷ total number of orders over the last 90 days. Find this in Shopify Analytics or your eCommerce platform reports.
$

Use a 90-day average to smooth out seasonal spikes.

2
Purchase Frequency ? How many times the average customer places an order within a 12-month period. Total orders ÷ total unique customers over the past year.
× / yr

eCommerce average is 2–4× per year. Check your CRM or platform analytics.

3
Average Customer Lifespan ? How long a typical customer keeps buying from you before churning. If you're unsure, start with 2–3 years and refine as you gather more retention data.
3 yrs

Drag to set the average number of years a customer stays active.

4
Gross Margin ? Revenue minus cost of goods sold (COGS), expressed as a percentage. Formula: (revenue − COGS) ÷ revenue × 100. Do not include overheads like salaries or rent.
40%

Use your weighted average if you sell multiple product lines.

Optional Inputs (CAC & Discount Rate)
5
Customer Acquisition Cost (CAC) ? Total spend to acquire one new customer - include ad spend, agency fees, and any other growth costs. Unlocks LTV:CAC ratio and payback period metrics.
$
6
Annual Discount Rate ? Accounts for the time value of money - a dollar earned in year 3 is worth less than a dollar earned today. 10% is a standard eCommerce benchmark.
10%

Default 10%. Higher rates give a more conservative Discounted LTV figure.

Gross Margin AOV × 3 orders/yr × 3 yrs Gross Profit LTV
20%$765$153
30%$765$230
40%$765$306
50%$765$383
60%$765$459
70%$765$536

Based on AOV of $85 · 3 orders/yr · 3-year lifespan. Your numbers will differ.

Your Results

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Results update instantly.

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Customer Lifetime Value (LTV) Calculator

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