CAC vs LTV Calculator | SmallBiz CFO
CAC vs LTV Calculator
SmallBiz CFO | Powered by Global Accounting LLC
Customer Acquisition Cost (CAC)
Total marketing spend
$
Sales team cost
$
New customers acquired
Customer Lifetime Value (LTV)
Avg order / transaction value
$
Purchase frequency
×/yr
Customer lifespan
yrs
Gross margin %
%
Discount rate
%
Referral value per customer
$
Industry benchmark
Your industry
CAC payback target
mo
CAC
$0
vs
LTV (gross)
$0
=
LTV:CAC
0:1
|
Payback
0 mo
|
Net LTV
$0
CAC
—
Cost per new customer
LTV (gross profit)
—
Over customer lifespan
LTV : CAC ratio
—
Target: 3:1+
CAC payback period
—
Months to recover
Net LTV (after CAC)
—
True profit per customer
Max affordable CAC
—
At 3:1 LTV ratio
Cumulative LTV by Year
What-If Scenarios
Enter your CAC and LTV inputs above
Fill in your marketing spend, new customers acquired, average order value, purchase frequency, and customer lifespan to calculate your LTV:CAC ratio.
Note. LTV is calculated as (AOV × frequency × lifespan × gross margin) discounted at your cost of capital. Referral value is added as an incremental benefit. Industry LTV:CAC targets vary. SaaS: 4:1+, E-commerce: 3:1, Services: 3:1+. A ratio below 1:1 means you lose money on every customer acquired. Payback period is calculated on gross profit basis.
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LTV calculations are projections. Actual customer behavior varies. Use as a planning tool, not a guarantee of revenue.