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- CLV Calculator
Customer Lifetime Value Calculator
Calculate your LTV:CAC ratio and find out if you are under-investing or burning money.
Enter your average order, margin, and acquisition costs to calculate CLV.
Model the impact of increasing your purchase frequency.
Based on 8.0 lifetime sales
How it works
Questions
Everything below is on the page for search engines as well as for you — no accordions hiding the answers.
A ratio of 3:1 is generally considered the benchmark for a healthy ecommerce business—meaning you make three times what you spend to acquire a customer. If it's 1:1, you're losing money after operating costs. If it's 5:1 or higher, you might be under-investing in marketing and missing out on growth.
The fastest way to improve CLV is by increasing purchase frequency. You can do this by running targeted retention campaigns (like WhatsApp win-backs or VIP offers), launching a loyalty program, or introducing subscription options.
Payback period is the time it takes for a customer's gross profit to cover the cost of acquiring them (CAC). A shorter payback period means you recover your cash faster, allowing you to reinvest it back into ads.
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