E-Commerce Finance
Repeat Purchase Rate Calculator
The Repeat Purchase Rate Calculator measures what share of your customers come back to buy again by dividing your repeat customers by your total customers. Enter your total customer count and the number who have placed more than one order, and it returns your repeat purchase rate as a percentage along with the new-customer share that makes up the rest. The result is a clean read on retention, the single behavior that decides whether your lifetime value can outrun your cost to acquire it.
Who it's for: Shopify and DTC brands who want a simple retention signal that shows how much of their customer base buys more than once and how dependent growth is on new acquisition.
How the Repeat Purchase Rate Calculator works
You enter two numbers: your total number of customers over a period and the number of those who have placed more than one order. The tool divides repeat customers by total customers and multiplies by 100 to give your repeat purchase rate. If 1,200 of 5,000 customers have ordered more than once, your repeat purchase rate is 24 percent, meaning that share of your base has come back to buy again.
The flip side of that figure is just as useful. The new-customer share is 100 percent minus your repeat purchase rate, so a 24 percent repeat rate means 76 percent of your customers are one-and-done. A high new-customer share tells you growth is leaning almost entirely on fresh acquisition, which is the most expensive way to grow, while a rising repeat rate means more of your revenue is coming from people you have already paid to acquire.
Repeat purchase rate is a leading indicator for lifetime value, which is why it matters so much for unit economics. A repeat buyer spreads their acquisition cost across several orders, so each additional purchase lifts LTV without adding any new acquisition spend. That is what improves your LTV-to-CAC ratio: the more orders a customer makes after the first, the more headroom you have to spend profitably to acquire the next one.
Read the rate as a trend, not a one-time snapshot. Track it over a consistent window, such as a rolling 12 months, and watch the direction rather than chasing a single number. A repeat rate that climbs as you invest in post-purchase email, subscriptions, and product quality signals a business that compounds, while a flat or falling rate over time is an early warning that you are buying customers who never return and that your growth rests on an ever-growing acquisition bill.
The formula
Repeat purchase rate = (repeat customers / total customers) x 100%, where repeat customers are those with more than one order. New-customer share = 100% - repeat purchase rate.
Frequently asked questions
What counts as a repeat customer?+
A repeat customer is anyone who has placed more than one order, so a customer with two or more purchases counts while a customer with a single order does not. The definition is deliberately simple: it captures whether someone came back at all, not how many times. Be consistent about the time window you use, because measuring repeat customers over your entire history will produce a higher rate than measuring within a single year.
What is a good repeat purchase rate?+
It varies widely by category, because consumable and replenishable products like coffee, supplements, or skincare naturally see much higher repeat rates than considered, one-time purchases like furniture or mattresses. Rather than chasing a universal benchmark, compare your rate against your own history and your product type, and watch the trend over time. A repeat rate that rises as you invest in retention is a more meaningful goal than any fixed industry figure.
Why does repeat purchase rate matter for LTV and CAC?+
Acquisition cost is paid once, but a repeat customer pays you back across multiple orders, so every additional purchase raises lifetime value without raising acquisition spend. A higher repeat rate therefore widens your LTV-to-CAC ratio and lets you afford a higher cost per acquisition on the first order. Brands with strong repeat rates can outbid competitors for new customers precisely because they earn more from each one after the sale.
How is repeat purchase rate different from churn or retention rate?+
Repeat purchase rate is a single cumulative measure of how many customers have bought more than once, which makes it easy to calculate and track. Cohort retention is more granular, following a specific group of customers and measuring what share is still active month by month, while churn measures the rate at which customers stop buying. Repeat purchase rate is the simplest starting point, and you can layer in cohort retention later for a more detailed view of when customers drop off.
How can I increase my repeat purchase rate?+
The highest-leverage levers are a strong post-purchase experience and reasons to come back: a welcome and replenishment email flow, a subscription or reorder option for consumables, loyalty incentives, and above all a product that meets expectations so the first order earns the second. Timing matters too, since prompting a second purchase while the brand is still fresh in mind converts far better than waiting until the customer has forgotten you.