CAC & LTV Calculator

Compare customer acquisition cost against lifetime value, with the LTV-to-CAC ratio and how many months it takes to pay back acquisition cost. Calculates in your browser.

LTV : CAC ratio

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Show the math

CAC is spend per customer; LTV is the margin a customer returns over their lifetime:

CAC = spend ÷ new customers

LTV = APV × purchases/yr × margin × lifespan

A healthy SaaS rule of thumb is an LTV:CAC of 3 or more with payback under 12 months. All math runs in your browser.

What this does

A CAC & LTV calculator compares customer acquisition cost against lifetime value, with the LTV-to-CAC ratio and the months it takes to pay back acquisition cost.

How to use it

  1. Enter your acquisition cost.
  2. Enter purchase value and frequency.
  3. Enter margin and lifespan.
  4. Read the LTV-to-CAC ratio.

How it works

A ratio of 3:1 or higher with a CAC payback under 12 months is a common healthy benchmark.

LTV = order value × purchases/yr × margin × years; ratio = LTV ÷ CAC

Understanding your result

The LTV-to-CAC ratio shows whether a customer earns back more than they cost to win. A ratio around 3 to 1 with payback under 12 months is a common healthy benchmark. A low ratio means acquisition is too expensive; a very high one can mean you are underinvesting in growth.

Example

A $300 LTV against a $100 CAC is a healthy 3:1.

Sources & methodology

Last updated .

Frequently asked questions

What is a healthy LTV to CAC ratio?

A ratio of 3 to 1 or higher is a common benchmark, paired with a CAC payback under 12 months.

How is LTV calculated here?

Average purchase value times purchases per year, multiplied by gross margin and the expected customer lifespan in years.

Is my data stored?

No. Everything is calculated locally in your browser.