E-commerce LTV Calculator

Estimate revenue and gross-profit customer lifetime value for your store from AOV, purchase frequency and lifespan — with optional refund and CAC inputs for LTV:CAC.

Written and reviewed by the CalcBundle editorial team. Transparent formulas · results are estimates, not advice.

E-commerce customer LTV

Enter AOV, orders per year and customer lifespan (all greater than zero).

What is an e-commerce LTV calculator?

Customer lifetime value (LTV) estimates how much a customer is worth to your store over their whole relationship with you. It tells you how much you can afford to spend on acquisition and still grow profitably.

How to calculate e-commerce LTV

Revenue LTV = AOV × purchase frequency × customer lifespan
Gross-profit LTV = Revenue LTV × gross margin
Or, using annual orders: Annual revenue per customer = AOV × annual orders, then × lifespan

Add a refund rate to see a refund-adjusted revenue LTV, and a CAC to see your LTV:CAC ratio.

Why repeat purchases matter

Most of a customer's value comes from repeat orders. Small improvements in retention or purchase frequency compound into large LTV gains — often the highest-leverage lever in e-commerce, ahead of raising AOV alone.

LTV and CAC together

LTV only means something next to acquisition cost. Compare it using the LTV:CAC ratio and the e-commerce CAC calculator. For a general (non-store) version, see the LTV calculator.

Example

A $100 AOV, 4 purchases a year over 3 years gives a $1,200 revenue LTV. At a 60% gross margin that is $720 of gross-profit LTV.

Frequently asked questions

What is customer lifetime value for e-commerce?

It is the total revenue — or gross profit — a customer generates over their relationship with your store. It is driven by average order value, how often they buy and how long they stay.

How do repeat purchases affect LTV?

Enormously. LTV scales with purchase frequency and lifespan, so improving retention and repeat-purchase rate usually lifts LTV far more than a one-off increase in order value.

What is the difference between LTV and AOV?

AOV is the value of a single order. LTV is the value of all orders a customer places over their lifetime. LTV = AOV × purchase frequency × lifespan.

What is LTV:CAC?

LTV:CAC compares lifetime value to acquisition cost. Enter your CAC and the calculator shows the ratio, a quick read on whether your unit economics work.

LTV

Estimate a customer's lifetime value from order value, frequency and lifespan — or churn.

E-commerce CAC

Calculate e-commerce customer acquisition cost, CAC % of AOV and LTV:CAC.

LTV:CAC Ratio

Compare lifetime value to acquisition cost and interpret the ratio.

AOV

Work out average order value and the revenue impact of raising it.

Disclaimer. This calculator provides estimates for informational purposes only. Results are based on the information you enter and the assumptions used by the calculator. Actual financial, tax, business valuation, lending, marketplace or investment outcomes may differ. Consider consulting a qualified professional for decisions involving significant amounts of money. Customer lifetime value is an estimate based on the assumptions entered and depends heavily on retention.