LTV/CAC Calculator

The Customer Lifetime Value (LTV) to Customer Acquisition Cost (CAC) Ratio measures the relationship between the lifetime value of a customer and the cost of acquiring that customer.

LTV/CAC Calculator

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Website Users p/m*

Average Revenue Per User (ARPU)*

How much money do you make from each customer each month. You can work out an average over all your products.

Client Lifetime (CLT)*

On average, how many months do your clients stay with you on average? If it's a once-off purchase then your CLT value is 1. If it's a monthly subscription of an average of 3 years, then your CLT value is 36

Monthly Marketing Costs (MMC)*

How much money do you spend on your marketing each month.

Average Sales p/m*

How many sales do you make a month?

Results

Conversion Rate*

Lifetime Value (LTV)*

Customer Acquisition Costs (CAC)*

LTV/CAC Value*

A good benchmark for LTV to CAC ratio is 3:1 or better. Generally, 4:1 or higher indicates a great business model. If your ratio is 5:1 or higher, you could be growing faster and are likely under-investing in marketing