Tools / E-COMMERCE
Customer Lifetime Value Calculator
A customer is worth far more than their first order. This calculator turns order value, repeat rate, and margin into lifetime value — and the ceiling on what you can pay to win one.
ABOUT THIS TOOL
Most stores price their ads against the first sale and quietly leave money on the table. Customer lifetime value fixes that: it captures everything a buyer is worth across every order they will ever place, so you can spend to acquire them with confidence. This free calculator combines your average order value, how often customers buy, how long they stay, and your gross margin into both a revenue LTV and a profit LTV — then suggests a healthy maximum customer acquisition cost so your growth stays profitable.
How to use it
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01
Enter average order value
What a typical order is worth — the AOV calculator works it out if you are unsure.
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02
Add purchase frequency
How many times a customer orders per year on average.
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03
Set customer lifespan
The average number of years a customer keeps buying from you.
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04
Add your gross margin
So the tool can show profit LTV and a safe acquisition-cost ceiling.
What people use it for
- Setting a maximum customer acquisition cost you can pay profitably
- Justifying retention and loyalty investment with a real number
- Comparing the value of channels that bring one-off vs. repeat buyers
- Modelling how a higher repeat rate changes what a customer is worth
The E-Commerce
Growth Playbook
17 moves that turn a store into a revenue machine — the exact levers our team pulls for the brands we build and grow.
- Convert more of the traffic you already pay for
- Speed wins that lift revenue on every visit
- Retention flows that make the second sale cheaper
- Ad math so you scale in profit, not blind
Enjoy the playbook!
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Frequently Asked
Questions
Common questions about this free tool.
What is the difference between revenue LTV and profit LTV?
Revenue LTV is the total a customer spends; profit LTV applies your gross margin to show what you actually keep. Always budget acquisition against profit LTV, not revenue.
How much of LTV can I spend to acquire a customer?
A common healthy rule is to keep acquisition cost under a third of profit LTV, leaving room for overheads and profit. Use your break-even ROAS to translate that into an ad-spend target.
How do I increase lifetime value?
Lift repeat purchase rate and order value — subscriptions, reorder flows, and post-purchase email are the biggest levers. We build these into the stores we develop.
Current store performance