Marketing Calculators
CAC vs LTV Calculator
Find out what a customer costs you, what they are worth, and how long it takes to earn back the acquisition cost.
Runs entirely in your browser — nothing you enter is sent or stored.
How it works
CAC = spend ÷ new customers. LTV = order value × purchases per year × lifespan × gross margin. Payback = CAC ÷ monthly gross profit per customer. An LTV:CAC ratio of about 3:1 is the usual healthy benchmark.
Frequently asked questions
Why use gross margin in LTV?
Because you only get to spend the profit on acquiring customers, not the revenue.
Is a very high ratio good?
Above 5:1 can mean you are under-investing in growth and could afford to acquire customers faster.