Free Ecommerce Tool

Ecommerce LTV & CAC Profit Calculator

See how customer lifetime value and acquisition cost change your store's projected profit. Adjust the two sliders and test the assumptions behind your unit economics.

Calculate Profit See the Formula

Profit model

(LTV × gross margin − CAC) × acquired customers − fixed costs

Higher LTV More value from each customer
Lower CAC Less spend to win a customer
Clear profit One result in your currency

Model Your Ecommerce Profit

Move the LTV and CAC sliders. Your projected profit updates instantly on the right.

₹15,000

Total revenue expected from one customer over the relationship.

₹3,000

Average marketing and sales spend needed to acquire one new customer.

Other assumptions

Changing currency applies a practical local slider range and preserves the relative LTV and CAC slider positions. It does not exchange-convert the other assumptions. Include payment fees, fulfilment, returns, and other variable costs in your gross margin assumption.

Projected profit over 12 months

₹2,01,54,000

Each acquired customer contributes ₹6,750 before fixed costs.

₹6,750 Profit per customer
5.0× LTV:CAC ratio
44.8% Projected net margin
Revenue from acquired customers₹4,50,00,000
Gross profit after variable costs₹2,92,50,000
Acquisition spend−₹90,00,000
Fixed operating costs−₹96,000

How the Profit Calculation Works

The model turns customer-level economics into a store-level projection.

Projected profit

First, LTV is multiplied by gross margin to estimate the gross profit created by one customer. CAC is then subtracted to get profit per acquired customer before fixed costs.

((LTV × gross margin) − CAC) × new customers per month × months − fixed costs per month × months

What Changes Ecommerce Profit?

Use the calculator to compare the main levers in your customer economics.

1
Increase LTV

Improve repeat purchase rate, retention, order frequency, and average order value so every acquired customer produces more revenue.

2
Control CAC

Improve conversion rate, creative performance, channel mix, and referrals so it costs less to acquire each new customer.

3
Protect Margin

Track product costs, discounts, payment fees, fulfilment, returns, and support costs so revenue turns into real gross profit.

Questions & Answers

How to use LTV, CAC, and margin assumptions in this ecommerce profit model.

What does this ecommerce profit calculator measure?

It estimates the profit produced by newly acquired customers over your selected period after variable costs, acquisition spend, and fixed operating costs.

What is customer lifetime value?

Customer lifetime value, or LTV, is the total revenue you expect one customer to generate across the full relationship with your store.

What should be included in CAC?

Include the marketing and sales costs required to acquire new customers. Depending on how you manage your numbers, this may include ad spend, agency fees, creative costs, and acquisition-focused software.

How should I choose gross margin?

Start with revenue minus product costs and other variable costs such as fulfilment, payment fees, discounts, and expected returns, then divide by revenue.

Is a higher LTV:CAC ratio always better?

A higher ratio generally gives you more room to cover operating costs and reinvest, but cash flow, payback period, customer quality, and the accuracy of your LTV estimate still matter.

Why can profit be negative when profit per customer is positive?

Positive customer contribution may still be too small to cover your monthly fixed operating costs at the selected customer volume.

Does changing currency convert the inputs?

No. Currency selection applies a practical local range to the LTV and CAC sliders and preserves their relative positions. It does not exchange-convert the other monetary assumptions.

Is this an accounting forecast?

No. It is a directional unit-economics model. It does not separately model tax, inventory timing, working capital, existing-customer revenue, or cash flow.