LTV-CAC Calculator

Compute customer lifetime value vs. acquisition cost with churn & margin sliders

Average Order Value ($)

Purchases per Month

Monthly Churn Rate (5%)

Customer lifetime: 0.0 months

Gross Margin (70%)

Marketing Spend ($)

Sales & Overhead ($)

New Customers Acquired

Time Period (months)

Lifetime Value (LTV)

Customer Acquisition Cost

LTV:CAC Ratio

0.0:1

Losing money on each customer

Payback Period

0.0 mo

Time to recover CAC

Profit per Customer

Monthly Revenue/Customer

For every $1 spent on acquisition:

$0.00 in lifetime value

Break-even timeline:

0.0 months after acquisition

• Target 3:1 Minimum: Healthy businesses maintain an LTV:CAC ratio of at least 3:1. Below this, growth becomes unsustainable without external funding.
• Payback Period Matters: Aim for CAC payback within 6-12 months. Longer periods require more working capital and increase risk.
• Reduce Churn First: A 5% reduction in monthly churn can increase LTV by 20-50%. Focus on retention before scaling acquisition.
• Include All CAC Costs: Don't forget sales salaries, onboarding costs, and attribution software in your CAC calculation.
• Segment by Channel: Calculate LTV:CAC for each marketing channel separately. Double down on channels with 4:1+ ratios.
• Monitor Cohort Behavior: LTV predictions improve with actual cohort data. Track 3, 6, and 12-month revenue retention rates.