> ## 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 CM2: Lifetime Variable Margin Value

> Track LTV CM2 for your Shopify store. Measure the total variable margin a customer generates over their relationship with your brand.

<Tip>
  LTV CM2 measures the total variable margin (after COGS and fulfillment) a customer generates over their lifetime—their true contribution before marketing costs.
</Tip>

## Formula

<Info>
  **LTV CM2** = **Total CM2** ÷ **Customers**
</Info>

### Formula Components

| Metric                                                                | Definition                      |
| --------------------------------------------------------------------- | ------------------------------- |
| [**Total CM2**](/reference/metrics/orders/contribution-margin/cm2)    | Variable 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 **\$480,000** total CM2 from **10,000** customers.

| Component   | Value     | Calculation        |
| ----------- | --------- | ------------------ |
| Total CM2   | \$480,000 | Variable margin    |
| Customers   | 10,000    | Unique buyers      |
| **LTV CM2** | **\$48**  | \$480,000 ÷ 10,000 |

***

## How It Works

LTV CM2 shows the variable margin contribution per customer after accounting for product costs and fulfillment. This is the most practical LTV measure for setting marketing budgets because it represents what's available to cover marketing costs.

***

## When to Use

| Scenario              | Action                               |
| --------------------- | ------------------------------------ |
| Marketing budget      | LTV CM2 sets max allowable CAC       |
| Channel profitability | Compare LTV CM2 to CAC by channel    |
| Cohort analysis       | Track how LTV CM2 develops over time |
| Unit economics        | Core input to profitability models   |

***

## Related Metrics

| Metric                                                   | Relationship           |
| -------------------------------------------------------- | ---------------------- |
| [LTV CM1](/reference/metrics/orders/ltv/ltv-cm1)         | Before fulfillment     |
| [LTV CM3](/reference/metrics/orders/ltv/ltv-cm3)         | After marketing        |
| [CM2](/reference/metrics/orders/contribution-margin/cm2) | Total variable margin  |
| [LTV:CAC](/reference/metrics/orders/ltv/ltv-cac)         | Acquisition efficiency |

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