LTV to CAC Calculator

Check whether each customer is worth what you spend to win them.

Email me this result We'll email your numbers and a link back. No spam.

Embed this calculator on your website — free

<iframe src="https://rebota.in/tools/ltv-cac-calculator?embed=1" width="100%" height="640" style="border:1px solid #e5e9f0;border-radius:12px" title="LTV to CAC Calculator" loading="lazy"></iframe>
<p style="font-size:12px"><a href="https://rebota.in/tools/ltv-cac-calculator">LTV to CAC Calculator</a> by Rebota</p>

Browse all free calculator widgets →

How to use the LTV to CAC Calculator

Enter average monthly revenue per customer.
Enter your gross margin percentage.
Enter the share of customers you lose each month.
Enter monthly sales and marketing spend and the number of new customers it brought in.

Formula used

LTV = ARPA × Gross margin ÷ Monthly churn

CAC = Sales & marketing spend ÷ New customers

LTV:CAC = LTV ÷ CAC · Payback months = CAC ÷ (ARPA × Gross margin)

Was this helpful?

LTV to CAC Calculator — FAQs

What is a good LTV to CAC ratio?▾

A ratio of 3:1 or higher is the widely used benchmark. Much higher than 5:1 can mean you are under-investing in growth.

Why use gross margin in LTV?▾

Revenue alone overstates value — the cost of serving the customer must come out. LTV on gross profit shows what is left to pay for acquisition.

What is a good CAC payback period?▾

Under 12 months is considered strong for subscription businesses; 12–18 months is common for B2B software.

What costs belong in CAC?▾

All sales and marketing costs for the period: ad spend, salaries and commissions of sales and marketing staff, tools and agency fees.

How to use the LTV to CAC Calculator

Formula used

LTV to CAC Calculator — FAQs

Related calculators