Customer Lifetime Value Calculator

Calculate your LTV:CAC ratio and find out if you are under-investing or burning money.

No signupNo email gateGrowth metric
Your metrics

Enter your average order, margin, and acquisition costs to calculate CLV.

Model the impact of increasing your purchase frequency.

Your customers currently buy 3.0 times a year.
Customer Lifetime Value
₹9,600

Based on 8.0 lifetime sales

LTV:CAC Ratio
Lifetime gross profit / CAC
6.6:1
Under-investing
Base CLV
Without retention uplift
₹9,600
Lifetime Gross Profit
CLV × 55% margin
₹5,280
Months to Payback
Time to recover CAC
4.8 mos

How it works

Questions

Everything below is on the page for search engines as well as for you — no accordions hiding the answers.

What is a good LTV:CAC ratio?

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.

How can I improve my Customer Lifetime Value (CLV)?

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.

What is payback period?

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.

Ready to automate it?

Improve LTV with WhatsApp retention.

RateUp increases customer lifetime value by delivering targeted post-purchase retention nudges.

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