Free tool
LTV and CAC calculator
See what a customer is worth and what it costs to win one. Enter average monthly revenue per customer, gross margin, monthly churn and your acquisition cost.
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How it works
How it works
LTV = average monthly revenue x gross margin divided by monthly churn. LTV to CAC compares that value with the cost of winning the customer. CAC payback is CAC divided by monthly gross profit per customer.
FAQ
About this calculator
What is a good LTV to CAC ratio?
Many subscription businesses aim for about 3 to 1 or better, but it depends on the business and how fast you want to grow. Treat that as a rule of thumb, not a standard.
How do I find churn?
Divide the customers you lost in a month by the customers you had at the start of that month.
What goes into CAC?
Sales and marketing spend in a period divided by the number of new customers won in that period.
Is anything saved?
No. The math runs in your browser and nothing you enter is sent to us.
Is this tax or financial advice?
No. It is a calculator for general information. Check the numbers against your own records, and ask an accountant before you act on them.
Related: break even calculator, net profit margin calculator. See all free tools. More free tools: Receipt Expense Report, Bank Statement Converter, Rent Roll and Late Notices, or see all free tools.
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