CAC & LTV Calculator
Calculate Customer Acquisition Cost and Lifetime Value from your marketing spend, new customers, revenue and churn — with LTV:CAC ratio analysis.
Quick answer: Calculate Customer Acquisition Cost and Lifetime Value from your marketing spend, new customers, revenue and churn — with LTV:CAC ratio analysis.
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Frequently asked questions
- How do I calculate CAC?
- CAC = Total sales & marketing spend ÷ Number of new customers acquired in the same period.
- How do I calculate LTV?
- LTV = (Average revenue per customer per month × Gross margin %) ÷ Monthly churn rate.
- What is a good LTV:CAC ratio?
- 3:1 is generally considered healthy — you earn three times what you spend to acquire a customer. Below 1:1 means you're losing money on acquisition; above 5:1 may mean you're under-investing in growth.
- What is churn rate?
- Monthly churn rate is the percentage of customers who cancel or don't renew each month. For example, if 5 out of 100 customers leave, churn is 5%.
- Why does gross margin matter?
- Not all revenue is profit. Gross margin strips out the cost of delivering the product, so LTV reflects the actual value a customer brings.
- Is this calculator free?
- Yes — free, no signup, runs entirely in your browser.
- Are my numbers stored?
- No — everything runs locally. Close the tab and the data is gone.
- Can I use this for SaaS?
- Yes — the formula is the standard SaaS LTV calculation. Enter your MRR per customer, gross margin and monthly logo churn.
- What if my churn is 0%?
- With zero churn the LTV is theoretically infinite. We show ∞ — in practice, no business has zero churn forever.
- Does it show payback period?
- Yes — we show the CAC payback period: how many months of gross-margin revenue it takes to recover the acquisition cost.