No. It’s a deterministic sanity check: no churn curve, no discounting, no cohort weighting. Use it to see whether your acquisition cost is in the right ballpark, not to project cash flow.

Where do I get orders per year and years retained?

From your store’s repeat-purchase report, or estimate conservatively. If you don’t know, 1 order per year and 1 year retained gives you a floor: CLV equals one order’s profit.

Why does LTV:CAC show a dash?

Because acquisition cost is zero. Enter your blended cost per new customer (ad spend ÷ new customers) to see the ratio.

Are the defaults industry benchmarks?

No — they’re an illustrative example so the page isn’t empty on load. Replace them with your numbers.

[ Free tool ]

Customer lifetime value calculator

How much is one customer worth over the time they keep buying — and how much can you afford to spend acquiring them? Five inputs, no cohort data needed.

Average order value

Orders per customer per year

1 = buys once a year

Years retained

Gross margin

After product, shipping and fees

Cost to acquire a customer

Blended CPA across channels

Defaults are an example store, not a benchmark. Replace them with your numbers.

Lifetime value

Marginal

$79

Gross profit per customer over 2 years

Lifetime revenue: $225
Orders per lifetime: 5.0
LTV : CAC: 2.8 : 1
CAC payback: 8.5 mo

Profit vs acquisition cost

Lifetime profit$79

Acquisition cost$28

Simple model: AOV × orders per year × years × margin. No discounting, no churn curve — good for a sanity check, not a forecast.

You can spend up to $79 to win a customer and still break even — at $28 you keep $51 per customer.

Repeat purchases start with the right product.

Majorka surfaces products with real, sustained demand — not one-week spikes.

Browse products free

How it works

1
Lifetime revenue = average order value × orders per year × years retained.
2
Lifetime profit applies your gross margin to that revenue.
3
LTV:CAC divides lifetime profit by what it costs to acquire a customer; 3:1 is the rule of thumb many operators use.
4
Payback is how many months of purchases it takes to earn the acquisition cost back.

Repeat purchases start with the right product.

Majorka surfaces products with real, sustained demand — not one-week spikes.

Browse products free

Frequently asked

Is this a forecast?: No. It’s a deterministic sanity check: no churn curve, no discounting, no cohort weighting. Use it to see whether your acquisition cost is in the right ballpark, not to project cash flow.
Where do I get orders per year and years retained?: From your store’s repeat-purchase report, or estimate conservatively. If you don’t know, 1 order per year and 1 year retained gives you a floor: CLV equals one order’s profit.
Why does LTV:CAC show a dash?: Because acquisition cost is zero. Enter your blended cost per new customer (ad spend ÷ new customers) to see the ratio.
Are the defaults industry benchmarks?: No — they’re an illustrative example so the page isn’t empty on load. Replace them with your numbers.

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