LTV:CAC Ratio Calculator
Enter average monthly revenue per customer, gross margin %, monthly churn, CAC per customer, optional explicit lifespan months, and expansion revenue per customer. See average lifespan, gross profit per month, LTV, CAC, LTV:CAC ratio, months to recover CAC, rating, and implied max CAC at 3× healthy ratio. Find out if your acquisition engine is profitable or burning cash.
Instant calculations · Editable fee assumptions · Export-ready results
Inputs
Values update results instantly. Adjust fee assumptions to match your seller dashboard.
Revenue
Monthly revenue per customer
Gross margin percent
Average monthly expansion per customer from upsells
Retention
Monthly churn rate
If 0, calculated from churn rate: 1/churnRate
Costs
Customer acquisition cost
Results
Live estimates based on your inputs and editable fee assumptions.
Avg lifespan (months)
28.57
From churn or explicit input.
Gross profit per customer / mo
$74.10
(Revenue + expansion) × margin.
Customer Lifetime Value (LTV)
$2,117.14
Gross profit × lifespan.
CAC
$1,200.00
Acquisition cost.
LTV:CAC ratio
1.76
LTV divided by CAC.
Months to recover CAC
16.19
CAC ÷ gross profit per month.
Interpretation
needs improvement — below 3×
Health rating based on ratio.
Implied max CAC at 3× ratio
$705.71
LTV ÷3 for healthy target.
What this means
Lifespan 28.6 months from 3.5% churn. Gross $74.10/mo × 28.6 = $2117 LTV. CAC $1200. Ratio 1.76 (needs improvement — below 3×). Payback 16.2 months. Max healthy CAC at 3× $706.
LTV vs CAC comparison
Interactive breakdown of fees, costs, and remaining profit.
Distribution
- LTV$2,117.1463.8%
- CAC$1,200.0036.2%
Total $3,317.14 · 2 segments · interactive
Line-item breakdown
Dollar amounts, share of revenue, and visual proportion.
- Avg monthly revenue
- $95.00
- Expansion monthly
- $0.00
- Gross margin
- 78.0%
- Monthly churn
- 3.5%
- Lifespan months
- 28.57
- Gross profit / mo
- $74.10
- LTV
- $2,117.14
- CAC
- $1,200.00
- LTV:CAC ratio
- 1.76
- Months to recover CAC
- 16.19
- Max CAC at 3× healthy
- $705.71
Assumptions used
- • Lifespan 28.57 = 1/0.0350 from churn
- • Gross $74.10 = ($95.00+$0.00)×78.0%
- • LTV $2117.14 = $74.10×28.57
- • Ratio 1.76 = 2117.14/1200.00
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LTV:CAC Ratio Calculator
Generated 8/4/2026, 2:51:02 PM · Currency USD
Inputs
- Avg monthly revenue per customer: 95
- Gross margin %: 78
- Monthly churn %: 3.5
- CAC per customer: 1200
- Avg lifespan months (0 = auto from churn): 0
- Avg monthly expansion revenue: 0
Results
- Avg monthly revenue: $95.00
- Expansion monthly: $0.00
- Gross margin: 78.0%
- Monthly churn: 3.5%
- Lifespan months: 28.57
- Gross profit / mo: $74.10
- LTV: $2,117.14
- CAC: $1,200.00
- LTV:CAC ratio: 1.76
- Months to recover CAC: 16.19
- Max CAC at 3× healthy: $705.71
Interpretation
Lifespan 28.6 months from 3.5% churn. Gross $74.10/mo × 28.6 = $2117 LTV. CAC $1200. Ratio 1.76 (needs improvement — below 3×). Payback 16.2 months. Max healthy CAC at 3× $706.
How it works
Methodology & formulas
This calculator is transparent by design. Review the steps and formulas so you can trust the estimate and adjust assumptions when your dashboard differs.
Calculation steps
- 1Derive lifespan from churn if not explicit.
- 2Compute monthly gross profit including expansion.
- 3Multiply by lifespan for LTV.
- 4Divide LTV by CAC for ratio.
- 5Rate ratio: <1 losing, 1-3 needs improvement, 3-5 healthy, 5+ exceptional.
- 6Show months to recover and healthy CAC ceiling for planning.
Formulas
- lifespanAuto = 1/(churn%/100)
- actualLifespan = lifespanInput>0 ? lifespanInput : lifespanAuto
- grossProfit = (avgRev+expansion)×margin%/100
- LTV = grossProfit × actualLifespan
- ratio = LTV / CAC
- monthsRecover = CAC / grossProfit
- maxCAC3x = LTV/3
Important assumptions
- If avgLifespanMonths =0 and churn>0, lifespan =1/(churn%/100).
- If explicit lifespan >0, use explicit even if churn provided.
- Gross profit per month = (avgMonthlyRevenue + expansionRevenue) × margin%/100.
- LTV = grossProfitPerMonth × lifespanMonths.
- LTV:CAC ratio = LTV / CAC if CAC>0.
- Months to recover = CAC / grossProfitPerMonth.
- If churn 0 and lifespan 0, LTV infinite → use explicit lifespan required.
- Max CAC at 3× = LTV/3.
Worked example
$95/mo, 3.5% churn, $1,200 CAC
$95 revenue, 78% margin, 3.5% churn = 28.6 months lifespan. Gross $74.10/mo. LTV $2,119. CAC $1,200 ratio 1.77 needs improvement. Months to recover 16.2. Max CAC at 3x $706.
FAQ
Common questions
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