DTC tools

DTC Growth Score & LTV

Enter your unit economics and get your customer lifetime value, your LTV to CAC ratio, how fast you recover acquisition cost, and a single 0 to 100 score that tells you whether your DTC brand is built to scale profitably.

Your numbers

Use real figures where you have them. Everything updates live.

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Retention — sharpens the score

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Results

Fill in your numbers to see your DTC Growth Score and where the biggest opportunity is.
DTC Growth Score
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A weighted read on LTV to CAC, margin, retention, and payback speed.
Customer lifetime value
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Gross profit per customer over their life
LTV : CAC
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3:1 or better is the DTC benchmark
CAC payback
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Months to recover acquisition cost
First-year value
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Gross profit per customer, year one

Know your LTV ceiling? The next question is whether your store and retention actually earn it.

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What is a DTC Growth Score?

A DTC Growth Score is a single 0 to 100 rating of how profitably a direct-to-consumer brand can grow, built from four numbers that decide it: your LTV to CAC ratio, your gross margin, your repeat purchase rate, and how many months it takes to earn back acquisition cost. This calculator scores each one against DTC benchmarks, weights them, and gives you one figure plus a letter grade. A high score means you can spend to acquire customers and come out ahead. A low score means growth burns cash, and the breakdown shows you which of the four is dragging it down.

How customer lifetime value is calculated

Lifetime value here is gross profit, not revenue. The formula is average order value times gross margin, times orders per year, times customer lifespan in years. So an $85 order at 55% margin, bought 2.2 times a year for 2.5 years, is worth about $257 in gross profit per customer. Revenue-based LTV numbers look bigger, but they overstate what a customer is actually worth, because they ignore the cost of the product you shipped.

What is a good LTV to CAC ratio?

The widely used benchmark is 3 to 1. Below roughly 1 to 1 you lose money on every customer you buy. Between 1 and 3 you make money but you may be underinvesting or running thin. At 3 to 1 the economics are healthy, and much above 4 or 5 to 1 often means you are underspending on acquisition and leaving growth on the table.

The four things the score measures

  • LTV to CAC ratio is the heaviest weight, because it decides whether acquisition makes or loses money.
  • Gross margin sets the ceiling on everything, since every dollar of LTV starts as margin.
  • Repeat purchase rate is the DTC growth engine, because repeat orders add value you already paid to acquire.
  • CAC payback captures cash reality, since a brand that waits a year to recover CAC grows slower than its ratio suggests.
FAQ

Everything you need to know.

How do I calculate customer lifetime value?
Multiply average order value by gross margin to get profit per order, then multiply by how many orders a customer places per year and how many years they stay. Using gross profit rather than revenue keeps the number honest, because it reflects what the customer is actually worth after the cost of goods.
What is a good LTV to CAC ratio for a DTC brand?
Around 3 to 1 is the standard healthy target. Under 1 to 1 means you lose money acquiring customers, and far above 5 to 1 usually means you could spend more on growth. Read it next to CAC payback, since a strong ratio that takes many months to realize still pressures cash flow.
What is CAC payback and why does it matter?
CAC payback is how many months of a customer's gross profit it takes to recover what you spent to acquire them. It matters because it decides how much cash you tie up to grow. A brand that recovers CAC in 3 months can reinvest far faster than one that takes 12, even if their LTV to CAC ratios match.
Why use gross profit instead of revenue for LTV?
Revenue-based LTV counts money that never reaches your bank, because it ignores the cost of the product you shipped. Gross-profit LTV reflects what a customer is truly worth, so the LTV to CAC comparison is apples to apples. It is the version investors and operators trust.
How can I raise my DTC Growth Score?
Move whichever pillar the breakdown shows lowest. Lifting repeat rate and margin raises LTV, which raises the ratio and shortens payback at the same time. Lowering CAC through better creative and a store that converts more of your paid traffic does the same from the other side. Small gains in two pillars usually beat a big push on one.
Built by Liquid Lemon, a Shopify design studio and DTC growth agency for consumer brands.
Planning model. Results are estimates based on the figures you enter, not a guarantee of performance.