> ## Documentation Index
> Fetch the complete documentation index at: https://docs.upstackdata.com/llms.txt
> Use this file to discover all available pages before exploring further.

# LTV CM1: Lifetime Gross Margin Value

> Track LTV CM1 for your Shopify store. Measure the total gross margin a customer generates over their relationship with your brand.

<Tip>
  LTV CM1 measures the total gross margin (revenue minus COGS) a customer generates over their lifetime—their true value before fulfillment and other costs.
</Tip>

## Formula

<Info>
  **LTV CM1** = **Total CM1** ÷ **Customers**
</Info>

### Formula Components

| Metric                                                                | Definition                   |
| --------------------------------------------------------------------- | ---------------------------- |
| [**Total CM1**](/reference/metrics/orders/contribution-margin/cm1)    | Gross margin from all orders |
| [**Customers**](/reference/metrics/orders/customers/unique-customers) | Count of unique customers    |

| Metadata        |                                                                                      |
| --------------- | ------------------------------------------------------------------------------------ |
| **Type**        | Currency                                                                             |
| **Data Source** | [Shopify](/sources/catalog/shopify), [Upstack Costs](/sources/catalog/upstack-costs) |
| **Aggregation** | Average                                                                              |

***

## Example

Your Shopify store has **\$600,000** total CM1 from **10,000** customers.

| Component   | Value     | Calculation        |
| ----------- | --------- | ------------------ |
| Total CM1   | \$600,000 | Gross margin       |
| Customers   | 10,000    | Unique buyers      |
| **LTV CM1** | **\$60**  | \$600,000 ÷ 10,000 |

***

## How It Works

LTV CM1 shows the gross margin contribution per customer before fulfillment and marketing costs. This is useful for understanding baseline customer value and setting acquisition cost targets.

***

## When to Use

| Scenario              | Action                                  |
| --------------------- | --------------------------------------- |
| CAC targeting         | Set max CPA based on LTV CM1            |
| Product mix analysis  | Higher-margin products increase LTV CM1 |
| Customer segmentation | Compare LTV CM1 across segments         |
| Pricing decisions     | Evaluate margin impact on LTV           |

***

## Related Metrics

| Metric                                                   | Relationship            |
| -------------------------------------------------------- | ----------------------- |
| [LTV](/reference/metrics/orders/ltv/ltv)                 | Lifetime revenue value  |
| [LTV CM2](/reference/metrics/orders/ltv/ltv-cm2)         | After fulfillment costs |
| [CM1](/reference/metrics/orders/contribution-margin/cm1) | Total gross margin      |
| [LTV:CAC](/reference/metrics/orders/ltv/ltv-cac)         | Acquisition efficiency  |

[See all LTV metrics →](/reference/metrics/orders/ltv)