CAC and LTV Calculator
What a customer costs to acquire against what they are worth over their life.
Method
How it works
Customer acquisition cost divides marketing spend by newly acquired customers. Annual customer profit multiplies order value, yearly order frequency and gross margin.
Lifetime value extends that annual profit across the entered lifespan. The LTV-to-CAC ratio compares the two, while payback months divide acquisition cost by annual profit and convert the result into months.
Common questions
Frequently asked questions
Should LTV use revenue or gross profit?
This calculator applies the entered gross margin to customer revenue before calculating LTV.
How is CAC payback period calculated?
CAC is divided by annual profit per customer and multiplied by 12.
Does LTV include customer retention changes or discounting?
No. Order frequency, margin and lifespan are treated as constant, with no discounted cash-flow adjustment.
Not financial advice. This calculator is for general informational purposes only. Check figures independently before making financial decisions.