CAC and LTV calculator with payback period
See what a customer costs, what they are worth over time and how fast you earn it back. Results update as you type, and nothing you enter leaves your browser.
How the calculation works
CAC is your marketing spend divided by the new customers it brought. LTV here is the gross profit a customer brings over their lifetime: average order value × gross margin × orders per year × years they stay. The payback period is how many months of profit it takes to earn back the CAC.
- An LTV to CAC ratio of 3 or more is a common healthy benchmark.
- Below 1, every new customer loses money.
- A short payback period lets you reinvest in growth faster.
Frequently asked questions
What is a good LTV to CAC ratio?
Around 3 or more is a common benchmark. Much higher can mean you could invest more in growth.
Should CAC include agency fees?
Yes. Include ads, agency and tool costs for the true cost of winning a customer.
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