Customer Lifetime Value (CLV / LTV) Calculator
Free Shopify CLV calculator — calculate customer lifetime value, your CLV:CAC ratio, and model the impact of improving AOV or retention on long-term revenue.
Customer metrics
Lifetime value results
Revenue CLV sensitivity — what lifts it most?
Cartylabs for Shopify
Grow CLV by lifting first-order AOV
Customers who spend more on their first order spend more on repeat visits too. Cartylabs upsells compound your CLV automatically.
Add to Shopify — FreeHow CLV is calculated
CLV = AOV × Purchase Frequency × Customer Lifespan
CLV:CAC = Profit CLV ÷ CAC — a healthy ratio is 3:1 or higher. Below 1:1 means you're losing money on each customer acquired.
The fastest way to improve CLV is to increase AOV on the first purchase — it signals a higher-value customer and sets a spending anchor for repeat visits. In-cart upsells and bundles are the most direct lever for Shopify stores.
Frequently asked questions about CLV
What is a good customer lifetime value for a Shopify store?
There is no universal "good" CLV — it depends on your acquisition cost (CAC). The key metric is the CLV:CAC ratio, where a healthy ratio is 3:1 or higher. This means a customer should be worth at least 3× what it cost to acquire them. Below 1:1 means you lose money on each customer. Top Shopify stores achieve 5:1 or higher through repeat purchase optimization and high-AOV first orders.
How is customer lifetime value (CLV) calculated?
CLV = Average Order Value × Purchase Frequency (orders/year) × Customer Lifespan (years). For example, a customer who spends $75 per order, buys 3 times per year, and remains a customer for 3 years has a revenue CLV of $675. Multiply by gross margin to get profit CLV. This calculator shows both revenue CLV and profit CLV.
What is the difference between CLV and LTV?
They are the same metric used interchangeably in ecommerce — Customer Lifetime Value (CLV) and Lifetime Value (LTV) refer to the same calculation. Some platforms use LTV as shorthand. The formula and interpretation are identical.
How can I increase CLV for my Shopify store?
The three levers are: (1) AOV — increase what customers spend per order through upsells, bundles, and free shipping incentives, (2) Purchase Frequency — increase how often customers return through email marketing, SMS, loyalty programs, and subscription offers, (3) Customer Lifespan — extend retention through excellent post-purchase experience and proactive customer service. AOV is typically the fastest lever to move.
Why does increasing first-order AOV improve CLV?
Higher first-order AOV signals higher-value customer intent and sets a higher spending anchor for future visits. Research shows that customers who spend more on their first order tend to have higher repeat purchase rates and spend more on subsequent orders. In-cart upsells that lift first-order AOV therefore have a compounding effect on CLV that goes beyond the immediate revenue impact.
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