₹1 Lakh Store — 90-Day D2C Playbook for Indian Founders

Calculators

LTV Calculator

Your Customer Lifetime Value determines whether you can afford to acquire customers. If LTV isn't at least 3× your CAC, you're burning cash, not building a business.

LTVCACLTV:CAC RatioPayback Period

Average Order Value (₹)

Purchases per Customer per Year

Gross Margin (%)

After COGS, shipping, packaging, gateway fees — not just product cost

Annual Churn Rate (%) — % who don't purchase again within 12 months

If 60% of your customers never buy a second time, start with 60%. Indian D2C average: 30–50% first-year churn.

Customer Acquisition Cost (₹)

Include ad spend + creative costs + agency fees

Results

₹1,123

Customer LTV

₹350

CAC

3.2×

LTV:CAC Ratio

10 mo

Months to Recover CAC

₹773

Net Value per Customer

Good: Healthy but watch CAC closely. Solid foundation, but keep CAC under control as you scale.

Can These Numbers Get You to ₹1L/Month?

101

New customers needed/month

₹35,350

Monthly acquisition cost

₹50,399

Repeat revenue covering

At these numbers, you need 101 new customers/month to hit ₹1L/month. That costs ₹35,350 in ads at your current CAC. With 2 purchases/year per customer, repeat revenue covers ₹50,399 of your goal. Your LTV:CAC ratio supports this — scale carefully.

How It Works

LTV Formula

Retention Rate = 100% − Churn Rate

Avg. Customer Lifespan = 1 ÷ (Churn Rate ÷ 100)

Annual Profit = AOV × Purchases/Year × Gross Margin%

LTV = Annual Profit × Avg. Lifespan (Years)

LTV:CAC Benchmarks

4×+ Excellent — invest aggressively in acquisition

3-4× Good — healthy, monitor CAC trends

2-3× Break-even — optimize retention or lower CAC

<2× Unsustainable — business model needs fixing

Important Notes

Gross Margin here includes ALL variable costs: COGS + shipping + packaging + payment gateway + RTO. Do not use just (price − COGS) — that will overstate LTV by 30-50%.

Churn rate is annual: If 40% of customers don't return within a year, that's your churn rate. For new brands, first-year churn is typically 40-60%.

This is a simplified model: Real LTV curves are non-linear (repeat customers buy more over time). Use this for directional decisions, not precise forecasting.

Tips to Improve LTV:CAC

Increase LTV

Bundle products to increase AOV

Set up post-purchase email flows

Launch a subscription model

WhatsApp retargeting for repeat purchases

Loyalty program with points

Decrease CAC

Improve landing page conversion rate

Build organic Instagram/Twitter presence

Referral program (word-of-mouth)

Retargeting audiences (lower CPC)

Influencer gifting vs. paid ads