LTV Calculator
See what a customer is worth over their lifetime, not just on the first order. Two models: one built from raw order counts, one from your gross margin.
LTV using values
Frequency comes from total orders divided by total customers. Type your own average purchase frequency to override it.
Purchase Frequency
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Profit on First Purchase
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Customer LTV
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LTV Profit
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LTV : CAC Ratio
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LTV using gross margin
Margin-side version of the same math. Leave frequency empty to reuse the frequency from the values section above.
Profit on First Purchase
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Customer LTV
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LTV Profit
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LTV : CAC Ratio
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We run this exact math for ecommerce brands scaling on Meta.
Book a free callHow the LTV Calculator works
Customer lifetime value tells you how much revenue one customer brings across every order they place, not just the first one. The values model multiplies your AOV by purchase frequency, which is total orders divided by total customers over the period you look at. LTV profit then removes acquisition cost once and product costs on every order.
The gross margin model runs the same idea from the margin side: profit on the first purchase is AOV times your gross margin minus CAC, and LTV profit applies that margin to the full lifetime revenue. Use it when you know your margin percentage better than your per-order costs.
A healthy benchmark for ecommerce is an LTV to CAC ratio of 3:1 or better. Under 2:1 you are paying too much for growth, and well above 3:1 you can usually afford to spend more aggressively on acquisition.