Customer LTV Calculator
Calculate Customer Lifetime Value from AOV, purchase frequency, customer lifespan and gross margin.
About this tool
LTV tells you how much profit an average customer generates over their entire relationship with your store. Plug in your average order value, repeat purchase rate and gross margin to get gross LTV and contribution LTV, the two numbers every D2C founder should know by heart.
Two LTV numbers, two uses
Gross LTV is total revenue an average customer generates. Use it to benchmark vs your competitors or to size a market. Contribution LTV is LTV multiplied by gross margin — what's actually left after cost of goods. Use this one for any CAC ceiling decision, because that's what pays for acquisition.
Three ways to lift LTV
- • Raise AOV — bundles, cross-sell, tiered free shipping
- • Raise purchase frequency — email/SMS flows, subscriptions, loyalty
- • Extend lifespan — onboarding, community, replenishment reminders
Frequently asked questions
What is Customer Lifetime Value (LTV)? +
LTV is the total profit an average customer generates over their entire relationship with your store. It anchors every other unit-economic decision, most importantly, how much you can spend to acquire each new customer (your CAC ceiling).
What's the difference between gross LTV and contribution LTV? +
Gross LTV is total revenue per customer (AOV × purchase frequency × lifespan). Contribution LTV multiplies that by gross margin, what's actually left after cost of goods. Use contribution LTV for CAC decisions; it's the real number.
What's a typical D2C LTV? +
It varies massively by category. Beauty and supplements often see contribution LTV of $80–$300 thanks to high repeat rates. Apparel runs $60–$200. Furniture and one-time purchases can be $40–$120 because lifespan is short.
Should I include shipping, returns and discounts in LTV? +
Yes, ideally. The simple formula here uses AOV × frequency × lifespan × margin, but a true contribution LTV strips returns, shipping subsidies and promo costs from AOV first. See our True Profit Per Order calculator to get a fully-loaded contribution per order.
How long should the customer lifespan input be? +
For most D2C, 2-3 years is realistic. Subscription / membership businesses can sustain 3-5+. Use your actual data if you have 12+ months of history; otherwise start at 2 years and update as you learn.
More free tools
See all tools →Calculate the SaaS Quick Ratio, (new MRR + expansion) / (churn + contraction). Above 4 = healthy growth; below 1 = shrinking.
Compare margin on first subscription order vs renewals, first order usually loses money (CAC + discount), renewals are pure profit.
Calculate Contribution Margin 1, revenue minus COGS, per order or per unit. The first tier of D2C profitability.
Calculate profit on the first transaction alone, most D2C brands have negative first-order profitability and only recover via repeat purchase.
Why wait? Try it free today.
Stop managing feeds manually. Start optimising with AI in 30 seconds.
- 100% free forever, no credit card required
- 1 brand, 1 feed, 100,000 products per feed
- Full AI Product Optimisation, Rule Engine, and 200+ channel exports
- Pay only for AI credits when you need them