Free Startup Tool

Free CAC:LTV Ratio Calculator

Turn your acquisition spend, ARPU, margin, and churn into your CAC, LTV, and LTV:CAC ratio — instantly. No signup.

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How It Works

Step 1

Enter Spend & New Customers

Total sales & marketing spend and how many customers it bought you.

e.g. $10,000 spend → 50 customers

Step 2

Enter ARPU, Margin & Churn

Monthly revenue per customer, gross margin, and monthly churn rate.

e.g. $49/mo, 80% margin, 3% churn

Step 3

Get CAC, LTV & Ratio

Your CAC, LTV, LTV:CAC ratio, and CAC payback period — instantly.

e.g. CAC $200 · LTV $1,306 · 6.5:1

Frequently Asked Questions

How is CAC calculated?

CAC (Customer Acquisition Cost) is your total sales & marketing spend divided by the number of new customers it acquired over the same period.

How is LTV calculated?

LTV (Customer Lifetime Value) is your average monthly revenue per customer, multiplied by your gross margin, multiplied by the customer's expected lifetime in months (1 divided by your monthly churn rate).

What's a good LTV:CAC ratio?

Most investors consider 3:1 or higher healthy for a SaaS business. Above 5:1 can mean you're under-investing in growth, while below 1:1 means you're losing money on every customer you acquire.

What is CAC payback period?

It's how many months it takes for a customer's gross-margin-adjusted revenue to cover their acquisition cost. Most SaaS companies target a payback period under 12 months.

Is this CAC:LTV calculator free?

Yes — calculating your CAC, LTV, ratio, and payback period is completely free with no signup required.

My ratio looks healthy — what should I check next?

A strong LTV:CAC ratio only holds up if the underlying demand is real. Our free Idea Validator checks your idea against actual complaints from Reddit, Hacker News, and Indie Hackers so you're not scaling spend against a problem nobody has.