Analify AI
Free ecommerce calculators · Customers

Customer lifetime value calculator

Work out what one customer is worth over the time they buy from you, in revenue and in profit, and the most you can pay to win one.

Example numbers. Replace them with yours.

USD
%
USD
×
Profit CLV
USD 119
Revenue CLV
USD 264
LTV:CAC
4.75×
Max CAC at your target ratio
USD 39.60
Revenue per customer per year
USD 132

What it calculates

Customer lifetime value (CLV or LTV) is the money a customer brings over their whole relationship with you. Revenue CLV multiplies order value, orders per year and years as a customer. Profit CLV keeps only the margin, which is the number to compare with acquisition cost. LTV:CAC shows how many times over a customer pays back what it cost to get them.

How to read the result

Use profit CLV, not revenue CLV, when deciding what to pay for a customer. The target ratio is your choice. A higher one leaves more room for overheads and mistakes; a lower one lets you grow faster with less cushion. If you are new, years as a customer is a guess. Use the repeat behaviour you can already see.

Learn the metric:Customer lifetime value (LTV)CAC

The formula

Revenue CLV = AOV × orders per year × years
Profit CLV = Revenue CLV × margin
LTV:CAC = Profit CLV ÷ CAC
Max CAC = Profit CLV ÷ target ratio

Worked example

Example inputs

Average order value
USD 60
Orders per year
2.2
Years as a customer
2
Margin
45%
Cost to acquire a customer
USD 25
Target LTV:CAC
3

Results

Profit CLV
USD 119
Revenue CLV
USD 264
LTV:CAC
4.75×
Max CAC at your target ratio
USD 39.60
Revenue per customer per year
USD 132

What changes the result

Orders per year at five values. Every other input stays as in the worked example; the highlighted row is the example.

Orders per yearProfit CLVLTV:CAC
1.1USD 59.402.38×
1.65USD 89.103.56×
2.2USD 1194.75×
2.75USD 1495.94×
3.3USD 1787.13×

Use your real numbers

Analify reads customers, orders and order values from Shopify and acquisition cost from your ad accounts, and shows customer lifetime value next to CAC.

Analify already reads 5 of these 6 inputs live, from Shopify · Ad accounts

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Questions

How do I calculate customer lifetime value?

Multiply average order value by orders per year and by years as a customer. Multiply by your margin to get profit CLV.

What is the difference between CLV and LTV?

None. Both mean customer lifetime value.

How much can I spend to acquire a customer?

Divide profit CLV by the LTV:CAC ratio you want to keep. At a profit CLV of 90 and a 3:1 target, you can pay up to 30.

Do you store what I enter?

No. The calculation runs in your browser and nothing is sent to Analify.

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