> ## 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 CM3: Lifetime Contribution Margin Value

> Track LTV CM3 for your Shopify store. Measure the total contribution margin a customer generates over their relationship with your brand.

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

## Formula

<Info>
  **LTV CM3** = **Total CM3** ÷ **Customers**
</Info>

### Formula Components

| Metric                                                                             | Definition                          |
| ---------------------------------------------------------------------------------- | ----------------------------------- |
| [**Total CM3**](/reference/metrics/orders/contribution-margin/contribution-margin) | Contribution 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), [Advertising Platforms](/sources/catalog/facebook-ads) |
| **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 |

***

## Related Metrics

| Metric                                                                   | Relationship              |
| ------------------------------------------------------------------------ | ------------------------- |
| [LTV CM2](/reference/metrics/orders/ltv/ltv-cm2)                         | Before marketing costs    |
| [LTV CM4](/reference/metrics/orders/ltv/ltv-cm4)                         | After fixed costs         |
| [CM3](/reference/metrics/orders/contribution-margin/contribution-margin) | Total contribution margin |
| [LTV:CAC](/reference/metrics/orders/ltv/ltv-cac)                         | Acquisition efficiency    |

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