LTV CM3: Lifetime Contribution Margin Value

LTV CM3 measures the total contribution margin (after all variable costs including marketing) a customer generates over their lifetime—their net contribution to profit.

Formula

LTV CM3 = Total CM3 ÷ Customers

Formula Components

Metric	Definition
Total CM3	Contribution margin from all orders
Customers	Count of unique customers

Metadata
Type	Currency
Data Source	Shopify, Upstack Costs, Advertising Platforms
Aggregation	Average

Example

Your Shopify store has $300,000 total CM3 from 10,000 customers.

Component	Value	Calculation
Total CM3	$300,000	Contribution margin
Customers	10,000	Unique buyers
LTV CM3	$30	$300,000 ÷ 10,000

How It Works

LTV CM3 shows the contribution margin per customer after all variable costs, including ad spend. This represents the true variable profit per customer—what’s left to cover fixed overhead.

When to Use

Scenario	Action
Break-even analysis	LTV CM3 must exceed 0 for profitability
Fixed cost coverage	LTV CM3 × Customers must cover OPEX
Customer quality	Compare LTV CM3 across acquisition sources
Business model validation	Positive LTV CM3 means viable unit economics

Metric	Relationship
LTV CM2	Before marketing costs
LTV CM4	After fixed costs
CM3	Total contribution margin
LTV:CAC	Acquisition efficiency

See all LTV metrics →