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Customer Lifetime Value Calculator
See what each customer is really worth — and your LTV:CAC ratio.
Your numbers
Add your acquisition cost to see the LTV:CAC ratio.
$
yrs
%
$
CAC — leave 0 to skip
Lifetime value (profit)
6.7× LTV:CAC$268.13
Lifetime revenue
$487.50
Profit / year
$89.38
LTV:CAC
6.7×
Aim for 3× or higherPayback
1.1 orders
Track real LTV and LTV:CAC
Connect your store and email and the Captain calculates lifetime value and repeat rate from your actual customer data.
How it’s calculated
LTV = Avg order value × Orders per customer × Gross margin
A fuller version multiplies by customer lifespan: AOV × purchase frequency × lifespan × margin.
Worked example
- Avg order value
- $50
- Orders per customer
- 3
- Gross margin
- 50%
- Result
- LTV = 50 × 3 × 0.5 = $75
You can spend up to ~$25 to acquire this customer and still hit a healthy 3:1 LTV:CAC.
What your result means
LTV is the profit a customer generates over their whole relationship, not just the first order. It tells you how much you can afford to spend acquiring one (CAC) and still profit. The LTV:CAC ratio — aim for roughly 3:1 — is the real health check.
Common mistakes
- Using revenue instead of margin — LTV should be profit-based.
- Assuming everyone repeats — segment by cohort; many customers are one-and-done.
- Ignoring time — a high LTV that takes three years to realise still strains cash flow today.
Learn how it works
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Frequently asked questions
What's a good LTV:CAC ratio?
Around 3:1 is a common healthy target — you earn about three times what it costs to acquire a customer. Below 1:1 you lose money on each; far above 3:1 you may be under-investing in growth.
Should LTV use revenue or profit?
Profit — apply your gross margin. Revenue-based LTV overstates what a customer is actually worth.
Last reviewed 31 Jul 2026 · reviewed by the Dash Captain team.