Customer lifetime value calculator.
See what a customer is worth to your store over time (their lifetime value, or CLV), what one costs to win (your customer acquisition cost, or CAC), and how soon they pay that back.
- Free
- Runs in your browser
- Nothing is sent or stored
What a customer is worth
$128
Profit after product costs over 4 orders, from $320 of sales: their customer lifetime value (CLV).
Cost to win one
$40
Your customer acquisition cost (CAC)
Each coral block is one order's profit. Past the line, the customer has paid back what they cost.
- Worth ÷ cost
- 3.2 : 1
- Healthy: over 2.4 : 1
- Paid back by
- Order 2
- Most to pay for one
- $128
A customer pays back what they cost, in time.
Their first order covers 80% of the $40 it cost to win them. Order 2 pays back the rest, about 8 months after the first, and they leave $88 over their lifetime once that cost is paid.
What a good LTV to CAC ratio looks like.
LTV is another name for CLV: what a customer is worth over time. The ratio compares it with CAC, what it costs to win them. Aim for lifetime profit of at least 2.4 times that cost.
- Below 1 : 1 Each new customer costs more to win than they leave. Fix this before you spend more on ads.
- 1 to 2.4 : 1 Customers pay for themselves, with less left for running costs and growth. Raise repeat orders or margin, or win customers for less.
- 2.4 : 1 or more Healthy. You have room to spend more on winning customers while each one stays profitable.
Why 2.4 : 1
It's the 3 : 1 rule you'll see quoted most, measured in profit. The rule comes from David Skok's SaaS Metrics 2.0 and compares a customer's lifetime revenue with what they cost, for businesses that keep 80% of each sale. In profit, that's 3 × 80% = 2.4.
We measure in profit because profit is what pays for winning a customer. It also keeps the target fair whatever your margin.
How soon a customer pays back
The ratio tells you whether a customer pays back what they cost. Payback tells you when. Until then you fund them from cash, so the sooner they pay back, the faster you can grow. The calculator shows the order that does it and about when it arrives.
How to calculate customer lifetime value.
Multiply what a customer spends each order by the orders they place, then keep the share that's profit. Divide it by what winning them cost for your ratio.
CLV = average order value × orders a year × years × gross margin
CAC = marketing spend ÷ new customers
LTV : CAC ratio = CLV ÷ CAC
A customer spends $80 an order, 1.6 times a year, for 2.5 years: $320 of sales. At a 40% margin, that's $128 of profit: their customer lifetime value (CLV, also called LTV).
The store spent $6,000 on marketing to win 150 new customers: a CAC of $40. $128 ÷ $40 = 3.2 : 1, above the 2.4 : 1 target. Each order leaves $32, so order 2 pays the customer back.
Where the numbers come from
- Average order valueOn Shopify's Analytics overview.
- Orders a year and years they keep buyingShopify's customer reports (Analytics > Reports, filtered to Customers) show orders per customer and how long returning customers keep ordering.
- Gross marginOrder value minus product cost, shipping, packing and payment fees, as a percentage of order value.
- Marketing spend and new customersSpend from your ad platforms and invoices, including agencies, tools and first-order discounts. New customers are first-time buyers in the same month.
How your numbers compare.
Published figures for Shopify stores, to check your own against.
Revenue per customer in their first 90 days
The median Shopify store takes $142 per customer in 90 days. The top 20% take more than $350; the bottom 20%, less than $74.
| Industry | Median, 90 days |
|---|---|
| Home and furniture | $248 |
| Food and beverage | $135 |
| Fashion and apparel | $124 |
| Health and supplements | $104 |
| Beauty and skincare | $86 |
Source: Littledata, 426 Shopify stores, 6 Jul–3 Oct 2026.
Customer acquisition cost
The median Shopify brand spends $47.6 to win a new customer.
Source: Polar Analytics, 4,000+ Shopify brands.
Check what each $1 of ads brings backCommon questions.
About lifetime value, acquisition cost and the ratio between them.
What do CLV, LTV and CAC mean?
CLV (customer lifetime value) is what a customer is worth to your store over all their orders. LTV (lifetime value) is the same thing by a shorter name. CAC (customer acquisition cost) is what it costs to win one new customer. The LTV to CAC ratio divides the first by the second: how many times over a customer pays back what they cost.
How do I calculate customer lifetime value?
Multiply your average order value by the orders a customer places a year and the years they keep buying. That's lifetime revenue. Multiply it by your gross margin for lifetime profit, which is the figure to compare with what a customer costs to win.
How do I calculate customer acquisition cost?
Divide what you spent on marketing in a period by the new customers you won in it. Count every cost of winning them (ads, agencies, tools, creative and first-order discounts) and only first-time buyers.
What's a good LTV to CAC ratio?
Lifetime profit of at least 2.4 times what a customer costs to win. That's the widely used 3 : 1 rule in profit terms: the rule compares revenue with CAC for businesses keeping 80% of each sale, and 3 × 80% is 2.4. Below 1 : 1, each new customer costs more than they leave.
Should CLV use revenue or profit?
Profit. A customer who spends $320 at a 40% margin leaves you $128, and that's what pays for winning them. Revenue-based CLV makes every ratio look better than it is.
How long should it take a customer to pay back what they cost?
The sooner the better. Until a customer pays back what they cost, you fund them from cash, so a short payback lets you grow without running short. The calculator shows the order that pays it back and about how many months after the first order that arrives.
Where do I find these numbers in Shopify?
Average order value is on the Analytics overview. Shopify's customer reports (Analytics > Reports, filtered to Customers) show returning customers and orders per customer over time. Marketing spend comes from your ad platforms and invoices.
Do you see the numbers I enter?
No. The calculation runs in your browser and the figures never leave it. We only record that the calculator was used, not what was typed.
Win customers for less, keep them for longer.
Coaching gives you a practical plan for your store, ads and email, and a partner who keeps meeting with you as the numbers move.