LTV and CAC calculator
Enter your revenue, margin, churn and spend. The answer updates as you type.
How it works
Lifetime value is monthly revenue per customer, times gross margin, divided by monthly churn. Acquisition cost is your spend divided by the new customers it won. The ratio divides one by the other. The payback divides acquisition cost by a customer's monthly gross profit.
All of it uses only what you type. Nothing is stored or sent anywhere.
Frequently asked questions
How is lifetime value worked out here?
Take monthly revenue per customer and multiply by gross margin. Divide by the share of customers lost each month. It assumes churn stays steady. Treat it as a rough guide for a young business.
What should go into acquisition cost?
All sales and marketing spend in the period, divided by the new customers it won. Count wages and tools as well as ads. Leave them out and the ratio flatters you.
What does the payback figure tell me?
It counts the months of gross profit it takes to earn back a customer's cost. A long payback means you need cash to keep growing, whatever the ratio says.