#1015 · E-commerce Tool

Amazon LTV Calculator

Estimate Amazon customer lifetime value using order value, repeat purchase frequency, lifetime, and gross margin so you can set smarter ad budgets and retention targets.

Calculator

Decision inputs
$
orders
years
%
Ad space

How to use this calculator

Enter average order value, purchase frequency, lifetime, and gross margin. The calculator estimates lifetime gross profit per customer.

What the result means

Higher LTV gives more room for paid acquisition, promotions, retention programs, and cross-sell campaigns.

LTV = Average order value × Purchases per year × Customer lifetime × Gross margin.

Use conservative frequency and lifetime assumptions if you do not have cohort-level repeat purchase data.

Example calculation

With $70 AOV, 5 purchases per year, 3 years, and 40% margin, LTV is $420.

Tips for better results

  • Increase repeat purchases with consumables, subscriptions, or bundles.
  • Improve gross margin before raising ad budgets.
  • Compare LTV with CAC before scaling campaigns.

FAQ

How do I calculate Amazon customer lifetime value?

Multiply average order value by purchase frequency, customer lifetime, and gross margin.

What is a good LTV for Amazon sellers?

A good LTV is high enough to support acquisition costs while leaving room for profit and overhead.

How does repeat purchase affect Amazon LTV?

Repeat purchase frequency is one of the strongest drivers of LTV because it increases revenue without acquiring a new customer each time.

Should Amazon LTV include gross margin?

Yes. Margin-based LTV is more useful because it reflects gross profit, not just revenue.

How can I increase customer lifetime value on Amazon?

Improve product quality, build bundles, encourage repeat purchases, and create brand follow-up outside the marketplace where allowed.

Decision module

MetricUse
Lifetime valueEstimated gross profit over the customer relationship.
Annual valueGross profit generated per year.
Customer scoreStrength of long-term value economics.

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