Free tool
Estimate simple LTV from AOV, purchase frequency and gross margin.
Simple LTV = AOV × Purchases per year × Years × Gross margin.
AOV 1,200, 2.5 purchases per year, 3 years, 45% margin. LTV = 4,050.
Cohort LTV from actual repeat behavior is better than a formula. This calculator is for sanity-checking ad bids when you do not yet have mature cohort data. Do not treat the output as a guarantee.
Revenue LTV overstates what you can spend to acquire a customer. Contribution LTV (after COGS, shipping, typical discounts and expected returns) is the number that can face CAC.
No. The calculation runs in your browser. Nothing is stored or transmitted.
Use any currency as long as every input uses the same one. The math does not depend on a currency code.
LTV = AOV × Frequency × Lifespan × Margin.
Calculate CAC from sales and marketing spend and the number of new customers won.
Calculate average order value from revenue and number of orders.
Calculate gross profit and profit margin from revenue and cost. Use it before you set a selling price or judge a channel.
Define the store metrics that matter, run a simple reporting cadence, stay humble about attribution, and connect numbers to decisions — not to dashboards for their own sake.
LTV estimates future contribution from a customer. Simple averages hide cohorts. Use a contribution model and treat precision as a range, not a forecast.
CAC is what you spend to win a customer. Blended and paid CAC answer different questions. This article lists what belongs in that spend—and what does not.
A useful store dashboard is small: conversion, AOV, margin, CAC, contribution and fulfillment health. Vanity traffic and session counts do not run the P&L.
AOV is revenue divided by orders. Bundles and free-shipping thresholds can raise it, but discounts that crush conversion or contribution are not a win.