Free tool
Is your LTV to CAC ratio healthy?
Plug in four numbers and see your customer lifetime value, the LTV to CAC ratio, payback period, and whether your growth math works.
LTV to CAC ratio
0:1
,Lifetime value
$0
CAC payback
0 mo
Avg lifespan
0 mo
How it works
Your unit economics in four inputs
01
Enter revenue and margin
Average monthly revenue per customer and gross margin.
02
Add churn and CAC
Your monthly churn and cost to acquire a customer.
03
Read the verdict
Ratio, payback and a clear healthy or not call.
FAQ
Quick answers
3:1 is the common healthy benchmark. Below 1:1 you lose money on each customer. Above 5:1 often means you could invest more in growth.
Lifetime value equals monthly revenue per customer times gross margin times average lifespan, where lifespan is one divided by your monthly churn.
The number of months of gross profit it takes to earn back what you spent to acquire the customer. Under 12 months is generally healthy.
Yes. Use average revenue per customer per month and your repeat or churn behaviour. For one-time buyers, treat lifespan as expected repeat purchases.
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