E-commerce LTV Calculator
For non-subscription ecommerce, a purchase-frequency model uses average order value, purchases per period, and estimated lifespan. Apply margin for lifetime gross profit. The example below instead demonstrates this calculator’s constant monthly revenue and churn model; do not enter order value as monthly ARPU without accounting for purchase frequency.
E-commerce LTV assumptions
Example E-commerce inputs
$75
8%
45%
Quick estimate: With these illustrative E-commerce values, the estimated LTV would be $422 in lifetime gross profit per customer, assuming monthly revenue, margin, and customer churn stay constant. These are example inputs, not industry averages.
Calculate Your E-commerce LTV
Use our free LTV calculator with your actual numbers. Estimates LTV from monthly ARPU, customer churn, and gross margin.
Open LTV CalculatorE-commerce LTV: Frequently Asked Questions
Average order value × purchase frequency × customer lifespan estimates lifetime revenue when frequency and lifespan use matching time units. Apply gross margin to estimate lifetime gross profit. Purchase frequency and repeat buying vary by product category, so check the estimate against observed cohorts.
Compare lifetime gross profit with acquisition cost and the time required to earn it. For example, $90 of gross-profit LTV against $30 CAC gives a 3:1 ratio. The same ratio based on revenue would overstate the amount available to cover acquisition and other costs.
Focus on three levers: (1) Increase AOV through cross-sells, bundles, and free shipping thresholds; (2) Increase purchase frequency with email marketing, loyalty programs, and subscription options; (3) Extend customer lifespan with excellent customer service, quality products, and re-engagement campaigns for dormant customers.