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Shopify LTV and CAC payback calculator

Enter five numbers from your store to estimate what a new customer is worth, how that compares with what you pay to win them and how many months it takes to earn the cost back.

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Calculator

Estimate your customer lifetime value

The calculator updates as you type. Everything runs in your browser, so nothing you enter is sent to us.

Net sales divided by the number of orders.

Include the first order.

Net sales minus product costs, as a share of net sales.

How long a typical customer keeps buying.

Marketing spend divided by new customers.

Your results

Revenue lifetime value
$462
Gross-profit lifetime value
$277
LTV to CAC ratio
6.2 : 1
CAC payback
5.8 months

This is a simple estimate that treats every customer like the average one. For a reliable figure, follow real customers with a cohort analysis.

How the calculator works

These are simple estimates that treat every customer like the average one. Real customers differ a lot by channel and by first product, which is why a cohort view gives a more reliable answer.

  • Revenue lifetime value = average order value × orders per year × years.
  • Gross-profit lifetime value = revenue lifetime value × gross margin.
  • LTV to CAC ratio = gross-profit lifetime value ÷ customer acquisition cost.
  • CAC payback = customer acquisition cost ÷ monthly gross profit per customer.

Questions

LTV calculator questions

What is a good LTV to CAC ratio?

Many e-commerce brands aim for a ratio of 3 or more on a gross-profit basis. The right target depends on your cash position, because a high ratio with a long payback can still strain cash flow.

What is a good CAC payback period?

The shorter the better, because you can reinvest sooner. Many DTC brands look for a payback within 6 to 12 months, and consumable brands often aim for less.

Should I use revenue or gross-profit LTV?

Use gross-profit LTV for budget decisions, because revenue ignores what the products cost you. Revenue LTV is useful for comparing with other brands that report it.

Where do I find these numbers in Shopify?

Average order value and orders come from your Shopify analytics. Gross margin needs your product costs, and CAC needs your total marketing spend divided by new customers.

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