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CAC & LTV Calculator

Calculate your CAC and LTV, compare channels side by side, and find out whether the return is worth the acquisition cost.

Your rows

Add one channel or customer cohort per row and compare CAC and LTV between them.

Acquisition (CAC)

Customer value (LTV)

CAC

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LTV

$0.00

Payback

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LTV:CAC

—

Acquisition (CAC)

Customer value (LTV)

CAC

—

LTV

$0.00

Payback

—

LTV:CAC

—

Advanced settings

Refine the calculation with the profit margin and set an LTV:CAC target to compare against.

The common industry benchmark is 3:1 — leave it blank if you don't want to compare against a target.

Overall summary

Total spend

$0.00

New customers

0

Average CAC

$0.00

Average LTV

$0.00

LTV:CAC ratio

0.0x

Average payback

—

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How the calculator works, in practice

$200 CAC

$10,000 spent ÷ 50 new customers

What each metric means

Understand the numbers behind CAC and LTV.

CAC (Acquisition Cost)

How much it cost, on average, to acquire each new customer — total acquisition spend divided by the number of customers acquired in the period.

LTV (Customer Value)

How much value each customer generates over the time they stay with you — average order value × purchase frequency × average retention time.

LTV:CAC ratio

The most important indicator: how much the customer is worth compared to what it cost to acquire them. The common benchmark is at least 3:1.

Payback

How many months it takes for the acquisition spend to pay for itself. The shorter it is, the faster cash frees up to reinvest in growth.

Tips about CAC and LTV

  • CAC and LTV alone say little — what matters is the ratio between the two. A high CAC can be great if the LTV is proportionally higher.
  • Measure CAC and LTV by channel separately (Google Ads, referrals, organic) — a channel might have a low CAC but attract customers who stick around less, with a low LTV too.
  • Factor the profit margin into LTV to get a real view of return — LTV calculated on gross revenue inflates how much each customer seems to be worth.
  • A very long payback (above 12 months, for example) strains the company's cash flow even with a good LTV:CAC ratio on paper — cash flow matters as much as total return.
  • Revisit CAC and LTV periodically: campaigns saturate, media costs rise, and customer retention behavior changes over time.
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Frequently asked questions about CAC and LTV

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