LTV and CAC calculator

LTV : CAC ratio 3 : 1 Healthy (≥ 3:1)

LTV (customer lifetime value): 240,00 €

LTV is the profit a customer brings you over their whole relationship with you. An LTV:CAC ratio of 3:1 or higher is usually considered healthy. Not financial advice.

This LTV and CAC calculator works out your customer lifetime value and the LTV:CAC ratio, so you can tell whether acquiring customers is actually profitable.

Acquire customers worth keeping

Comparing what a customer is worth (LTV) against what it costs to win them (CAC) is the key metric for sustainable growth: if the ratio is low, you’re growing at a loss. Everything is calculated in your browser; nothing is sent anywhere.

FAQ

What is LTV?

Customer lifetime value: the profit a customer brings you over their whole relationship with you, based on how much they buy, how often and for how long.

What's a good LTV:CAC ratio?

A common benchmark is 3:1 or higher — you earn at least three times what it costs to acquire each customer. Below 1:1 you lose money on every new customer.

What is CAC?

Customer acquisition cost: the average amount you spend (in marketing, sales, tools) to win one new customer.