Free tool

Customer lifetime value (LTV) calculator

What one customer is worth to your store over the years they buy from you. It decides how much you may pay to get a customer.

Your store

Average order value (AOV)

€

Revenue per order, incl. shipping Gross margin

What is left after product, shipping and fees Orders per customer per year

1 = they buy once a year Years as a customer

How long they keep buying

Lifetime value (gross profit)

–

One customer brings in – in revenue over – orders, and leaves – gross profit. That is the most a customer is ever worth to you.

–× –× –× –= –

The most you may pay per customer

–

At a healthy LTV : CAC of 3 : 1, so the customer also pays for your time, returns and growth.

Break-even (LTV : CAC 1 : 1)–

Healthy (3 : 1)–

Profit on the first order only–

From the first order to a lifetime

Revenue of one customer–

Lifetime value (gross profit)–

The most to pay per customer (3 : 1)–

Gross profit of the first order–

How to use it. If a customer only buys once, the most you can pay for them is the profit of that one order. When they come back, every repeat order adds to what they are worth, and you may pay more to get them: that is why stores with repeat buyers can outbid stores without. Keep your cost per customer (CAC) well under the LTV: at 3 : 1 the customer pays for the ads, and leaves room for returns, your time and growth.

Also free: the break-even ROAS & profit calculator and the Shopify theme detector.