Free calculator
LTV : CAC Calculator
The fastest health check on your business model. If LTV:CAC is under 3, you're spending too much to acquire customers. Over 5? You're under-investing in growth.
LTV
$784
CAC
$100
LTV : CAC
7.8 : 1
Payback
2.6 mo
💪 Very healthy. You're probably under-spending on growth — consider increasing marketing budget.
Frequently asked
What's a good LTV:CAC ratio?
3:1 is the gold standard. Below 1:1 you lose money on every customer. Above 5:1 usually means you can spend more on growth and still be healthy.
What's payback period?
Months to recover the CAC from one customer's gross profit. Under 12 months is healthy for SaaS. Over 24 is risky.
Why include gross margin?
LTV without margin overstates value. Revenue minus serving costs = the real money the customer brings you.