CAC, LTV & Payback Calculator

Work out what a customer costs, what they're worth over their lifetime, and how many months it takes to earn the acquisition cost back.

Currency:

Acquisition assumptions

£

Customer value assumptions

£
%

Timing assumption

mo

Include VAT / tax

Off by default. Turn on to factor tax into the figures.

LTV : CAC

2.29 : 1

3:1 or better is the common healthy benchmark.

CAC

£40.00

LTV (gross profit)

£91.80

Lifetime revenue

£204.00

Payback period

5.2 mo

Below the 3:1 benchmark. Lower CAC to £30.60 or raise LTV to £120.00 to get there.
LTV:CAC2.29:1
AcquisitionPayback 5.2 months12 months

How it works

Enter your acquisition spend, new customers and revenue per customer over a period. The calculator gives you CAC, LTV, the LTV:CAC ratio and payback period. A ratio below 3:1 or a payback longer than your cash runway is a warning sign most investors ask about.

Basic guide

Enter marketing spend and the number of new customers acquired during the period.

Then enter average order value, lifetime orders per customer, gross margin and customer lifespan. The calculator estimates CAC, lifetime value, LTV:CAC and the payback period.

Example

Marketing spend: £4,000
New customers: 100
Average order value: £60
Orders per customer: 3
Gross margin: 51%

The calculator uses these figures to estimate acquisition cost, customer lifetime value and how long it takes to recover the acquisition cost.

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