Customer lifetime value calculator
Acquisition cost only makes sense next to lifetime value. Enter how your customers buy and see what one is worth.
Your numbers
Results
Lifetime profit (CLV)
$188
- Lifetime revenue
- $418
- Revenue per year
- $139
- CLV : CACLifetime profit ÷ acquisition cost
- 5.4 : 1
- Orders to pay back CAC
- 2
- Max CAC at 3 : 1Spend up to this per customer and keep a 3:1 ratio
- $62.64
5.4 : 1 — healthy. You could spend up to $62.64 per customer and stay at 3 : 1.
How it's calculated
- Lifetime revenue = AOV × orders per year × lifespan
- Lifetime profit = lifetime revenue × gross margin
- CLV : CAC = lifetime profit ÷ CAC
- Payback orders = CAC ÷ (AOV × gross margin), rounded up
Related tools
Questions
3 : 1 is the common rule of thumb: a customer should return three times what it cost to acquire them. Below 1 : 1 you lose money on every new customer; far above 5 : 1 you are probably under-investing in growth.
From your store analytics: orders per customer over the last 12 months gives frequency; the average gap between a customer's first and last order (for lapsed customers) gives lifespan. New stores can start with 1.5 orders a year and a 2-year lifespan.
Numbers are easy. Finding products that hit them is the hard part.
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