Customer Lifetime Value (LTV) Calculator
Customer Lifetime Value (LTV) is the total profit an average customer generates for your store across their entire relationship with your brand. It sets the ceiling on how much you can profitably spend to acquire each customer.
Customer Lifetime Value (LTV) is the total profit an average customer generates for your store across their entire relationship with your brand. It sets the ceiling on how much you can profitably spend to acquire each customer.
LTV = AOV × Orders per Year × Lifespan (years) × Gross Margin
- LTV - not first-order profit - is the ceiling for a healthy CAC.
- Brands that lose the LTV lever compete on price and burn cash on acquisition.
- Small gains in repeat rate move LTV dramatically because the compounding is multiplicative.
- Launch (or fix) a Klaviyo/Omnisend welcome, browse-abandon, post-purchase and winback flow set.
- Bundle complementary SKUs to lift AOV by 10-25% at zero extra acquisition cost.
- Introduce a subscription or replenishment option for consumables.
- Tighten the second-order window - email + SMS at day 14, 30 and 60 post-purchase.
- Fix product quality and CX - refunds and 1-star reviews cap lifespan hard.
LTV Calculator - questions founders ask
A good LTV is one that is at least 3× your fully-loaded CAC. For a DTC brand with £50 CAC, aim for £150+ profit LTV. Category matters - consumables (supplements, coffee, skincare) target £300-£800 LTV; considered purchases (mattresses, luxury fashion) rely on high first-order margin.
Want the operator team behind these numbers?
BeingEcom runs Email & SMS Retention for UK Shopify and WooCommerce brands. Book a free strategy call and we'll model the same numbers against your real store.