Customer lifetime value calculator
Enter the average order value, how often a customer buys per year, how many years they stay and your gross margin. The calculator returns lifetime revenue, lifetime value and how much you can spend to acquire a customer.
Inputs
USD
per year
years
%
Results
Customer lifetime value
$180.00
- Lifetime revenue
- $450.00
- Max acquisition cost (LTV:CAC 3:1)
- $60.00
How it is calculated
Lifetime revenue = Average order value Γ Purchases per year Γ Lifespan in years Customer lifetime value = Lifetime revenue Γ Gross margin Max acquisition cost = Customer lifetime value / 3
Lifetime revenue multiplies how much a customer spends per order by how often they buy and for how long. Applying the gross margin turns that into lifetime value, the profit a customer contributes before acquisition costs. Dividing by three gives the acquisition cost at the common 3:1 LTV to CAC target.
Frequently asked questions
Profitario does this per order automatically from your Shopify, ad and supplier data. See the profit dashboard
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