Skip to main content
Home
About
Blog
Contact
936-946-0295 Book a Free Strategy Call
Free Tool

LTV & CAC Calculator

Find out what a customer is really worth, what one costs to win, and how fast it pays back.

Free Tool

Is Winning Customers Worth the Cost?

Enter a few numbers about your customers and your marketing. Nothing is saved or sent.

What a customer pays you each time they buy.

How often a typical customer buys from you. Use 1 for a one-time job.

Your best estimate of a typical customer's lifespan.

What's left of each sale after the cost of the product or service. Not sure? Try 40%.

Ads, agency fees, tools, and content for the same month.

How many new customers that spending brings in.

—
Waiting for your numbers

Transparency

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.

FAQ

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.

Let's Talk

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.

Talk to a real person

Call or Text936-946-0295
Service AreaServing Houston, Texas, and beyond