Unit economics answers the only question that decides whether a store can scale: does each customer earn more than they cost? The CAC calculator prices what a customer costs to acquire, the LTV calculator estimates what they spend over their lifetime, and the LTV to CAC ratio calculator puts the two side by side. A ratio near 3:1 is the standard health mark; under 2:1, growth spends money faster than it makes it.
The supporting metrics feed those three. Average order value and purchase frequency multiply into LTV, retention and churn set how long the buying relationship lasts, and refund rate quietly discounts everything. The contribution margin calculator converts revenue into the per-order profit that actually repays acquisition spend, because customers pay back CAC in margin dollars, not revenue.
Work the chain in order: contribution margin first, then CAC, then payback period, then LTV. Each answer becomes an input to the next, which is why these calculators cross-link the way they do.
Frequently asked questions
What is a good LTV to CAC ratio?
3:1 is the standard benchmark: a customer should return about three times what they cost to acquire. Below 2:1 the economics rarely survive fee increases or ad-cost inflation; far above 4:1 often signals underinvestment in growth. Measure LTV in contribution margin, not revenue, because a 3:1 revenue ratio on a 30%-margin product is actually losing money.
What is a good CAC for an e-commerce store?
There is no universal number, only a relationship to order profit. Most DTC stores pay $20–60 to acquire a customer, and the figure is healthy when first-order contribution margin covers most of it and repeat purchases cover the rest within a few months. A $45 CAC is fine at a $120 AOV with 60% margins, and fatal at a $35 AOV.
How do I increase average order value?
The reliable levers: a free-shipping threshold set 15–30% above current AOV, bundles that discount the add-on rather than the hero product, and in-cart or post-purchase cross-sells. Gains of 10–20% are realistic; doubling AOV usually requires changing the catalog, not the checkout. Track contribution per order alongside AOV so discounts do not buy a bigger number that earns less.
How long should CAC payback take?
Under 3 months is strong for e-commerce, under 6 is acceptable, and past 12 months acquisition is consuming cash faster than most stores can fund. Payback is CAC divided by the contribution margin a typical customer generates per month. Shorter is disproportionately valuable because the recovered cash immediately funds the next customer, compounding growth without outside capital.
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