CAC & LTV Calculator
Work out your customer acquisition cost and lifetime value, then see the all-important LTV:CAC ratio and payback period with a health verdict. Free CAC & LTV calculator for founders and marketers.
Acquisition
Customer value
LTV : CAC ratio
8.6 : 1
Healthy
A widely used benchmark is an LTV:CAC of 3:1 or higher. Below 1:1 you lose money on every customer.
How to use the CAC & LTV Calculator
- 1
Enter marketing spend and new customers for CAC.
- 2
Add order value, frequency, lifespan and margin for LTV.
- 3
See your LTV:CAC ratio and payback period.
- 4
Aim for 3:1 or better.
Frequently asked questions
What is a good LTV:CAC ratio?
3:1 is a common healthy benchmark. Much higher can mean you're under-investing in growth; below 1:1 means you lose money per customer.
How is LTV calculated here?
Average order value × orders per year × average lifespan × gross margin — giving the profit a typical customer generates over their lifetime.
What's payback period?
How long it takes the profit from a customer to recover the cost of acquiring them — shorter is better for cash flow.
Tips & discussion
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