LTV & CAC Calculator
Find out what a customer is really worth, what one costs to win, and how fast it pays back.
Is Winning Customers Worth the Cost?
Enter a few numbers about your customers and your marketing. Nothing is saved or sent.
Breaking down your numbers
Estimates based on the numbers you entered, not guarantees of results.
How We Calculate This
No black box. Here are the formulas behind every number.
- Lifetime value (LTV) = average sale × purchases per year × years × profit marginProfit, not revenue, over a customer's whole time with you.
- Customer acquisition cost (CAC) = marketing spend ÷ new customersWhat it costs on average to win one customer.
- LTV:CAC = LTV ÷ CACUnder 1 is losing money, 1 to 3 is below the common 3:1 target, 3 to 5 is healthy, and 5 or more is excellent. The 3:1 target is a rule of thumb, not a law.
- Payback period = CAC ÷ monthly profit per customerHow many months of a customer's profit it takes to earn back what you spent to win them.
Estimates, not guarantees
Every result and projection on this page is an estimate based on the assumptions and numbers you enter above, using the formulas listed here. Projections are based on those assumptions, not guarantees of future results. Real performance depends on your market, offer, creative, website, sales process, and many other things, and it can be higher or lower. We don't verify the numbers you enter, and nothing here is financial or tax advice.
LTV & CAC Calculator FAQ
The total profit a customer brings in over their whole time with you. This calculator multiplies the average sale by how often they buy, how many years they stay, and your profit margin.
What you spend on marketing to win one new customer: your marketing spend divided by the number of new customers it brought in.
A common rule of thumb is 3:1 or better, meaning a customer is worth at least three times what it cost to win them. The right number also depends on your cash flow, how fast you want to grow, and how long customers take to pay back.
Lower CAC with better targeting, creative, and landing pages. Raise LTV with repeat purchases, better follow-up, and a smoother customer experience. We can help with both.
Want to Lower What Customers Cost You?
Tell us about your business and we'll go through your numbers with you, free. Tip: use the copy button above and paste your results into your message.