Why LTV and CAC belong together
Customer lifetime value shows how much gross profit a customer brings in. Customer acquisition cost (CAC) shows what you spent to win them. A store can look busy and still lose money if CAC is higher than LTV, and it can grow safely when LTV is well above CAC.
Where to start
Begin with the LTV calculator if you do not yet know what a customer is worth. Take the gross profit figure to the LTV to CAC calculator, add what you spend to win customers, and check the ratio and payback period. To see the profit on a single order, use the net profit calculator.