Calculate CAC and LTV Online

Calculate customer acquisition cost, lifetime value, LTV:CAC ratio, and payback period. Updates instantly as you type.

—CAC
—LTV
—LTV:CAC
—Payback

How to use

  1. Enter marketing spend and number of new customers.
  2. Enter average monthly revenue per customer and expected lifespan.
  3. 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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