Is this calculator specific to Shopify?

The math is ecommerce-specific and works especially well for Shopify stores because it includes the costs Shopify merchants usually need to model: COGS, payment fees, shipping, returns, ad spend, inventory, conversion rate, or repeat purchases depending on the tool.

Should I use gross margin or contribution margin?

Use contribution margin when you are making advertising, discount, or growth decisions. Gross margin is useful, but contribution margin is stricter because it accounts for variable costs like payment fees, fulfillment, shipping, returns, and app costs.

Why does the tool use default values?

Defaults make the calculator useful immediately and show the shape of the result before you enter your own numbers. Replace them with your store's actual numbers before making a final decision.

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Subscription Business Calculator

Calculate MRR, ARR, churned revenue, LTV, and CAC payback for subscription ecommerce or membership businesses.

Subscription business calculator

Calculate MRR, ARR, churned revenue, customer LTV, and CAC payback for subscription ecommerce or membership products.

Active subscribers

ARPU

Monthly churn

Gross margin

CAC

MRR

$23,200

ARR

$278,400

Churned MRR

$928.00

Gross LTV

$580.00

CAC payback

3.9 mo

A CAC payback below 6 months is usually comfortable for small subscription businesses. Longer payback needs stronger cash reserves or better retention.

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About this tool

What this free tool calculates

Use this for subscription boxes, memberships, replenishment programs, or any ecommerce subscription offer.

How to use the result

MRR equals active subscribers times ARPU. LTV is gross profit per customer divided by monthly churn. CAC payback is CAC divided by monthly gross profit per customer.

Use CAC payback and churned MRR together: fast payback with high churn still needs retention work.

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Why the calculator stays input-driven

This free ecommerce tool does not guess demand, scrape competitors, or invent benchmarks. Change the numbers to match your store, then use the result to decide whether a product, campaign, discount, or inventory move is worth doing.

Frequently Asked Questions

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