LTV:CAC calculator

Compare what a customer is worth over their lifetime with what it cost to win them.

Your numbers

Revenue per customer per monthAverage monthly revenue from one customer

Gross marginShare of revenue left after the cost of delivering it

Average customer lifetimeHow long customers stay. Tip: 1 ÷ monthly churn, so 5% churn ≈ 20 months.

CACCost to win one customer. Not sure? Use the CAC calculator.

How it works

LTV = revenue per month × gross margin × lifetime in months
LTV:CAC = LTV ÷ CAC

A common rule of thumb is 3:1: a customer should be worth about three times what they cost to win. Below 1:1 you lose money on every customer. Well above 5:1 can mean you could spend more to grow faster.

One-off purchases? Use average order value × orders per month as the monthly revenue.