CAC & Customer LTV Calculator
Calculate blended customer acquisition cost, simplified gross-profit customer lifetime value, the LTV-to-CAC ratio and an estimated acquisition payback period.
Compare acquisition cost with customer value.
Calculate blended CAC, simplified gross-profit LTV, the LTV:CAC ratio and an estimated payback period.
Method: CAC = marketing and sales acquisition costs ÷ new customers. Simplified LTV = order value × annual purchase frequency × customer lifespan × gross margin. Payback uses average monthly gross profit per customer.
Important: This simplified model does not discount future cash flow or model changing retention cohorts. Use customers and costs from the same measurement period.
Your entries are calculated on this device and are not intentionally saved by LifeWidget.
A clear answer, with the method included.
How to use this cac & customer ltv calculator
- Enter the requested information in the fields above.
- Check that the values match your situation.
- Read the result, then copy it if you need it elsewhere.
The formula
CAC = marketing and sales acquisition costs ÷ new customers. Simplified gross-profit LTV = average order value × annual purchase frequency × customer lifespan × gross margin.
Example
If $6,500 in marketing and sales costs acquires 40 customers, blended CAC is $162.50. A $120 order purchased three times yearly for 2.5 years at 55% gross margin produces a simplified $495 gross-profit LTV.
Good to know.
Should marketing spend and customers use the same period?
Yes. Compare acquisition costs and newly acquired customers from the same cohort or reporting period.
Is this a full financial LTV model?
No. It is a simplified gross-profit model. It does not discount future cash flow or account for changing retention, expansion revenue or cohort behavior.
What is blended CAC?
It combines the entered marketing and sales acquisition costs across all channels and divides them by total new customers.
How is the payback period estimated?
CAC is divided by average monthly gross profit per customer. Real cash timing, subscriptions, churn and delayed payments can change the result.
What is a good LTV-to-CAC ratio?
There is no universal answer. Capital requirements, payback speed, retention confidence, operating costs and growth strategy all matter; use the ratio as one decision input rather than a guarantee.