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💰 LTV & LTV:CAC Calculator

Enter monthly revenue per user, gross margin, monthly churn, and CAC to instantly get customer lifetime value, average lifetime, LTV:CAC ratio with a health verdict, and CAC payback period — all calculated in your browser.

Customer LTV
Avg lifetime
LTV : CAC
CAC payback

About

Customer Lifetime Value (LTV) measures the total gross profit a business can expect from a single customer over their entire relationship. The formula used here is: LTV = (Monthly Revenue per User × Gross Margin %) ÷ Monthly Churn %. Average customer lifetime in months is 1 ÷ Monthly Churn %. The LTV:CAC ratio compares what you earn from a customer against what you spent to acquire them — a ratio above 3:1 is the widely cited benchmark for a healthy SaaS or subscription business. CAC payback period (in months) shows how long it takes to recover acquisition costs from gross profit: CAC ÷ (Monthly Revenue per User × Gross Margin %). All calculations run entirely in your browser with no data sent to any server.

How to use

  1. Enter the average monthly revenue generated per customer (MRR divided by total customers).
  2. Enter your gross margin percentage — revenue minus cost of goods sold, divided by revenue.
  3. Enter your monthly churn rate — the percentage of customers who cancel or lapse each month.
  4. Enter your Customer Acquisition Cost (CAC) — total sales and marketing spend divided by new customers acquired.
  5. Read your results: LTV, average customer lifetime, LTV:CAC ratio with a good/warning/poor verdict against the 3:1 benchmark, and CAC payback months.

FAQ

What is a good LTV:CAC ratio?
3:1 is the widely accepted benchmark. Below 1:1 means you lose money on every customer. Between 1:1 and 3:1 signals tight margins or high acquisition costs. Above 3:1 indicates a healthy, scalable business. Above 5:1 may suggest underinvestment in growth.
What is the LTV formula used here?
LTV = (Monthly Revenue per User × Gross Margin %) ÷ Monthly Churn %. This gives the expected gross profit from a customer over their lifetime. Average lifetime in months = 1 ÷ Monthly Churn %.
How is the CAC payback period calculated?
CAC Payback Months = CAC ÷ (Monthly Revenue per User × Gross Margin %). It answers how many months of gross profit are needed to recover the cost of acquiring one customer. Under 12 months is generally considered strong for SaaS.
What gross margin should I use?
Use your product-level gross margin: (Revenue − Cost of Goods Sold) ÷ Revenue × 100. For pure SaaS this is often 70–85 %. Include hosting, support, and licensing costs in COGS. Do not use operating or net margin here.
Does this tool save my data?
No data is sent to any server. All calculations happen instantly in your browser. Values may persist in your browser's localStorage for convenience, but they never leave your device.