Customer lifetime value calculator
This customer lifetime value calculator (also searched as a lifetime value of a customer calculator) helps you estimate LTV, LTV:CAC ratio, and net profit per customer after marketing costs.
Calculator
- This tool calculates lifetime profit (not lifetime revenue): profit per order × purchase frequency × lifespan.
- LTV:CAC ratio helps you understand if customer acquisition is sustainable over time.
Why LTV is the most important metric in ecommerce
Not all ecommerce stores grow the same way. Some constantly chase new customers. Others build long term, profitable brands. The difference often comes down to one metric: LTV.
LTV measures how much value a customer generates over the entire relationship with your brand. In saturated markets, improving LTV is what separates scalable businesses from fragile ones.
What LTV actually tells you
CPA and ROAS are not enough without LTV. If a customer buys 3, 5, or 10 times, you can spend more to acquire them and still stay profitable.
Stores with strong LTV monetize through email, SMS, repeat purchases, upsells, bundles, and subscriptions. That creates predictable revenue when ad costs rise.
Products get copied and CPMs increase. Brands that survive retain customers longer, increase AOV over time, and build habits instead of one off purchases.
With LTV, you stop optimizing for short term wins and build systems: onboarding, post purchase experience, and smart product expansion. The question becomes: does this customer stay?
How to improve LTV (practical levers)
- Increase profit per order with bundles, better offers, and pricing discipline.
- Increase purchase frequency with post purchase email and SMS flows.
- Extend lifespan with better product quality, support, and retention hooks.
- Track LTV by cohort so you see long term performance, not just short term ROAS.