Calculate CAC and LTV Online
Calculate customer acquisition cost, lifetime value, LTV:CAC ratio, and payback period. Updates instantly as you type.
How to use
- Enter marketing spend and number of new customers.
- Enter average monthly revenue per customer and expected lifespan.
- See CAC, LTV, ratio, and payback period instantly.
Frequently asked questions
How do you calculate CAC?
CAC (Customer Acquisition Cost) = Total marketing spend ÷ Number of new customers acquired. For example, $10,000 spend acquiring 100 customers = $100 CAC.
How do you calculate LTV?
LTV (Lifetime Value) = Average monthly revenue per customer × Customer lifespan in months × Gross margin %. This tool uses monthly revenue and lifespan to estimate total customer value.
What is a good LTV:CAC ratio?
A ratio of 3:1 or higher is generally considered healthy — each dollar spent acquiring a customer returns at least three dollars in lifetime value. Below 1:1 means you are losing money on acquisition.
What is CAC payback period?
Payback period is how many months it takes for a customer to generate enough revenue to cover their acquisition cost. Shorter is better — SaaS companies often target under 12 months.
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