E-commerce LTV Calculator
E-commerce LTV is calculated differently from SaaS because customers make discrete purchases rather than paying recurring subscriptions. The key inputs are average order value (AOV), purchase frequency, and average customer lifespan. Understanding LTV helps e-commerce businesses optimize ad spend, loyalty programs, and product strategy.
E-commerce Industry Benchmarks
Typical E-commerce Starting Values
$75
8%
45%
Quick estimate: With these typical E-commerce values, the estimated LTV would be $422 per customer (using the gross-margin-adjusted formula).
Calculate Your E-commerce LTV
Use our free LTV calculator with your actual numbers. Supports simple LTV, gross-margin-adjusted, and cohort-based calculation methods.
Open LTV CalculatorE-commerce LTV: Frequently Asked Questions
E-commerce LTV uses the formula: LTV = Average Order Value x Purchase Frequency x Average Customer Lifespan. Unlike SaaS where revenue is recurring, e-commerce customers make discrete purchases. This means purchase frequency and retention are critical variables that can vary significantly across product categories.
Good e-commerce LTV varies by niche. General retail targets $100-$300, specialty/niche brands aim for $300-$1,000, and luxury or high-frequency consumable brands can achieve $1,000-$5,000+. The key benchmark is LTV:CAC ratio of at least 3:1, which means if your CAC is $30, your LTV should be at least $90.
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.