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Free Finance & Planning tool

LTV to CAC Calculator

Use average revenue, gross margin and customer lifetime to see whether acquisition spend is covered by customer value.

Your inputs

Try the example values, then enter your own. This tool runs in your browser.

Your result

Use the example or enter your figures, then calculate.

This simple model assumes steady revenue and margin. It omits discounting, retention cohorts and expansion.

How it works

LTV = monthly revenue per customer × gross margin × average lifetime in months. LTV:CAC = LTV ÷ acquisition cost.

Common questions

What should CAC include?

Include sales and marketing costs attributable to winning a customer, divided by customers acquired.

Is a high ratio always good?

A high ratio can also mean you are underinvesting in growth; interpret it with payback and cash flow.

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