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.
Acquisition assumptions
Customer value assumptions
Timing assumption
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
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.