LTV:CAC Ratio Calculator
Customer lifetime value against acquisition cost, with the CAC payback period — the two numbers that decide unit economics.
Formula
The rule of thumb: LTV:CAC ≥ 3 and CAC payback ≤ 12 months (≤18 for enterprise). Below 3 you're under-monetizing or overspending; far above 5 you're probably under-investing in growth. Always margin-adjust LTV — revenue you don't keep isn't lifetime value.
Not financial advice — for informational and analytical use only. Verify all figures with a qualified professional before acting on them.
Disclaimer: This tool is for general informational and estimation purposes only and is not professional financial, tax, accounting or legal advice. All figures are estimates — verify with a qualified professional before making decisions. Read the full disclaimer.
Need ltv:cac ratio calculator results fast? Analysts, founders, traders and finance professionals use the LTV:CAC Ratio Calculator to skip the spreadsheet and get a defensible answer in one step — free, private and instant.
About LTV:CAC Ratio Calculator
Customer lifetime value against acquisition cost, with the CAC payback period — the two numbers that decide unit economics. The rule of thumb: LTV:CAC ≥ 3 and CAC payback ≤ 12 months (≤18 for enterprise). Below 3 you're under-monetizing or overspending; far above 5 you're probably under-investing in growth. Always margin-adjust LTV — revenue you don't keep isn't lifetime value. The governing relationship is LTV = ARPA × margin × (1/churn); ratio = LTV/CAC. The LTV:CAC Ratio Calculator computes entirely in your browser — free, private (your figures never leave your device) and instant, recalculating live as you change any input.
How to use LTV:CAC Ratio Calculator
- 1Enter ARPA (monthly) (currency), Gross margin (%), Monthly churn rate (%), CAC (fully loaded) (currency) into the LTV:CAC Ratio Calculator.
- 2The result is computed automatically using LTV = ARPA × margin × (1/churn); ratio = LTV/CAC — there is no button to press.
- 3Change any input to model a different scenario, then copy or share the result.
Why use LTV:CAC Ratio Calculator?
- ✓Computes ltv:cac ratio calculator instantly with the correct formula — no spreadsheet needed
- ✓100% free and unlimited, with no sign-up, login or paywall
- ✓Runs entirely in your browser, so the figures you enter stay private
- ✓Shows the formula, a live worked example and references so you can defend the number
Frequently asked questions
What is the formula behind the LTV:CAC Ratio Calculator?+
LTV:CAC Ratio Calculator uses LTV = ARPA × margin × (1/churn); ratio = LTV/CAC. The rule of thumb: LTV:CAC ≥ 3 and CAC payback ≤ 12 months (≤18 for enterprise). The tool substitutes your actual inputs into this relationship and shows the worked example step by step.
What inputs does the LTV:CAC Ratio Calculator need?+
Enter ARPA (monthly) (currency), Gross margin (%), Monthly churn rate (%), CAC (fully loaded) (currency) and the result updates immediately — there is no button to press. Change any value to model a different scenario in real time.
Is the LTV:CAC Ratio Calculator free, and is my data private?+
Yes — it is completely free with no sign-up or usage limit, and it runs entirely in your browser, so the numbers you enter are never uploaded or stored on any server. It is for informational and analytical use, not financial advice.
What should I watch out for when using the LTV:CAC Ratio Calculator?+
Below 3 you're under-monetizing or overspending; far above 5 you're probably under-investing in growth. Always margin-adjust LTV — revenue you don't keep isn't lifetime value.
What is the LTV:CAC Ratio Calculator based on?+
The method follows authoritative sources: David Skok — SaaS metrics; a16z unit economics. The formula and references are shown on the page so you can verify and cite the result.
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