Customer lifetime value (LTV) is the total profit a typical customer generates across their whole relationship with your store.
What is the Customer Lifetime Value Calculator?
This free customer lifetime value calculator estimates the profit a typical customer brings over their lifetime, and the maximum you can spend to acquire one. LTV is the single most important number for deciding how aggressively you can invest in growth.
How this calculator works
Enter your average order value, how many times a customer buys per year, how many years they stay, and your gross margin. The tool multiplies these to get revenue LTV, applies your margin for profit LTV, and divides profit LTV by three to suggest a healthy maximum CAC.
How to read your result
The headline is your profit LTV per customer. The rows show revenue LTV, annual value, profit LTV, and the most you can spend to acquire a customer at a 3:1 ratio. If LTV is low, retention, subscriptions, and loyalty are the fastest ways to raise it.
Work with a Shopify expert
If you want to raise LTV, retention and subscription features usually pay back fast. Talk to a Shopify expert.
This free customer lifetime value calculator gives a fast, data-informed estimate; for wider industry context on customer lifetime value, see Shopify's guide to customer lifetime value.
Profit LTV = AOV * purchase frequency * lifespan * gross margin %Factors
Average order value
Higher AOV lifts every future order's contribution to lifetime value.
Purchase frequency
How often customers reorder is the strongest lever on LTV.
Customer lifespan
The longer customers stay, the more lifetime value compounds.
Gross margin
Profit LTV, not revenue LTV, is what you compare against acquisition cost.
- Free and instant - no sign-up required.
- Built for Shopify and ecommerce stores.
- Use real numbers to plan with confidence.
- Turn the result into action with CartCoders.
Related calculators
Planning a project usually means weighing more than one number. These tools cover the decisions next to this one:
- CAC & Payback Calculator — cost to acquire a customer
- MRR & Churn Calculator — subscription revenue
- Average Order Value Calculator — grow AOV
Frequently asked questions
How is customer lifetime value calculated?
Multiply average order value by purchase frequency and customer lifespan for revenue LTV, then multiply by gross margin for profit LTV. This calculator does both and suggests a healthy maximum acquisition cost.
What is a good LTV:CAC ratio?
Around 3:1 is the widely used benchmark, three dollars of lifetime profit for every dollar of acquisition cost. Below 2:1 is usually unsustainable; far above 5:1 can mean you are under-investing in growth.
How do I increase LTV?
Improve retention with great post-purchase experience, email and SMS flows, loyalty programs, and subscriptions. Raising repeat purchase rate moves LTV more than chasing new traffic.