Free tool · Calculators

LTV to CAC ratio calculator

Find out how much a customer is worth over their lifetime, on a gross-margin basis, and whether your acquisition cost leaves room to grow.

Average order value$Orders per customer per yearYears a customer staysGross margin%Customer acquisition cost$

Results

Lifetime value (gross margin): $216
LTV:CAC ratio: 3.6 : 1; 3:1 is a common target
CAC payback: 6.7 months

How to use the ltv to cac ratio calculator

1Enter average order value and how often customers buy.
2Enter how long they stay and your gross margin.
3Enter your CAC to get the ratio and payback period.

Questions

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