About this tool
Compare an estimated customer value with acquisition cost using the order, repeat-purchase and margin assumptions entered. Treat future customer behaviour as a scenario rather than as guaranteed revenue.
Calculations and file processing run in this browser tab. The tool does not send working inputs or files to our hosting server.
मुख्य इनपुट और नियंत्रण हिंदी में देखने के लिए ऊपर “🇮🇳 हिंदी में देखें” चुनें। गणना और फ़ाइल प्रोसेसिंग इसी ब्राउज़र टैब में होती है; टूल आपके इनपुट हमारी होस्टिंग पर नहीं भेजता।
Features
- Work with Average Order Value (AOV) (₹); Contribution Margin % (After COGS & Shipping) (%); Average Lifetime Orders per Customer.
- Review Contribution Profit / Order; Net Lifetime Value (LTV); LTV : CAC Ratio in the result breakdown.
Benefits
- Connect repeat-purchase assumptions to acquisition cost.
- Compare customer economics on a margin basis.
Who should use this tool?
- Small businesses reviewing acquisition economics.
- Marketing teams checking a retention scenario.
How to use
- Complete the labelled fields for your scenario, including Average Order Value (AOV) (₹); Contribution Margin % (After COGS & Shipping) (%); Average Lifetime Orders per Customer. Use the units shown beside each field.
- Try the example labelled “₹850 AOV, 45% Margin, 3.2 Orders, ₹380 CAC (3.22x LTV:CAC)” if you want to check the workflow first.
- Select Calculate / Run Tool and review Customer LTV & LTV:CAC Ratio and Contribution Profit / Order; Net Lifetime Value (LTV).
- Check the assumptions and limitations below. Adjust a value to compare scenarios, then copy or download the result you need.
Try these worked examples
| Scenario | Example inputs | Example result |
|---|---|---|
| ₹850 AOV, 45% Margin, 3.2 Orders, ₹380 CAC (3.22x LTV:CAC) | Average Order Value (AOV) (₹): 850Contribution Margin % (After COGS & Shipping) (%): 45Average Lifetime Orders per Customer: 3.2Customer Acquisition Cost (CAC) (₹): 380 | LTV: ₹1,224 | LTV:CAC = 3.22x |
| ₹1,200 AOV, 50% Margin, 2.0 Orders, ₹600 CAC (2.0x LTV:CAC) | Average Order Value (AOV) (₹): 1200Contribution Margin % (After COGS & Shipping) (%): 50Average Lifetime Orders per Customer: 2Customer Acquisition Cost (CAC) (₹): 600 | LTV: ₹1,200 | LTV:CAC = 2x |
Reference and processing
Standard E-Commerce Retention & Unit Economics Formulas · Listed applicability: 2025-2026
Calculations and file processing run in this browser tab. The tool does not send working inputs or files to our hosting server.
FAQs
Is lifetime value guaranteed future income?
The estimate depends on average order value, repeat behaviour and margin assumptions. Actual retention, returns and costs can differ from the scenario.
Which inputs do I need for Customer Lifetime Value (LTV) & CAC Payback Calculator?
Use Average Order Value (AOV) (₹); Contribution Margin % (After COGS & Shipping) (%); Average Lifetime Orders per Customer; Customer Acquisition Cost (CAC) (₹). The built-in examples show how those fields fit together.
What should I check before using this result?
Uses Gross Margin LTV (not top-line revenue LTV) for realistic profitability analysis. Check the assumptions and output against your intended task before relying on the result.
What happens to the information I enter?
Calculations and file processing run in this browser tab. The tool does not send working inputs or files to our hosting server. Tool favourites save only tool IDs in this browser. Sharing sends the tool link, not your working values or files.