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Home✦Tools✦CAC : LTV Calculator

Free CAC : LTV calculator.

Drop in your spend, customers, revenue and margin to see your CAC, lifetime value, LTV:CAC ratio and payback period in real time — and whether your unit economics are healthy.

Your numbers

Everything you spent to acquire customers in the period: ads, salaries, tools, agency fees.

How many new paying customers that spend brought in over the same period.

Pick how your customers pay. This changes how lifetime value is built up.

Average monthly subscription or recurring revenue from one customer.

Share of revenue left after cost of delivery. SaaS is often 70–85%; retail 20–40%.

How many months an average customer stays before churning.

Your unit economics

Enter your numbers

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CAC — cost to acquire

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LTV — lifetime value

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LTV : CAC ratio

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CAC payback (months)

Ratio vs. 3:1 target

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0 1:1 break-even 3:1 healthy

Months to recover CAC

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0 mo6 mo12 mo18+ mo
Fill in the fields to see your CAC : LTV summary.

How to read this

Make the math mean something.

CAC
is your spend divided by new customers — the all-in price of one customer.
LTV
uses gross margin, not raw revenue, so it reflects actual profit. Subscription: revenue × margin × lifespan. One-time: revenue × margin × purchases.
LTV : CAC ratio
≥ 3:1 is healthy, 1–3:1 is thin, and below 1:1 means you lose money on every customer.
CAC payback
(subscription only) is how many months of gross profit it takes to earn the customer back. Under 12 is good, under 6 is excellent.
Estimates only — they're as good as your inputs. Use blended figures across a real period for the truest read.

Get the full picture

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CAC : LTV questions

Asked, answered.

What is a good LTV:CAC ratio?+

The classic benchmark is 3:1 — for every dollar you spend acquiring a customer, you want about three dollars of lifetime gross profit back. Below 1:1 you lose money on every customer. Between 1:1 and 3:1 your unit economics are thin and likely won't cover overhead. Much above 5:1 isn't always a win either — it can mean you're under-investing in growth and leaving the market open to faster competitors.

Should I use revenue or gross margin for LTV?+

Always use gross margin, not raw revenue. LTV is supposed to measure the profit a customer generates over their lifetime, so you multiply average revenue by your gross margin percentage before comparing it to CAC. A SaaS business at 80% margin and an e-commerce store at 30% margin can have identical revenue per customer but wildly different real LTV — and a wildly different ratio. That is why this calculator asks for margin.

What is CAC payback period and why does it matter?+

CAC payback is how many months of gross profit it takes to earn back what you spent acquiring a customer. It only applies to recurring or subscription revenue. A payback under 12 months is generally healthy; under 6 is excellent. The longer your payback, the more cash you have to float to fund growth — which is why two businesses with the same LTV:CAC ratio can have very different cash needs.