finance
LTV Calculator
Calculate customer lifetime value and the LTV:CAC ratio.
$
%
$
Customer lifetime value
$960.00
LTV : CAC ratio
4.8 : 1
How it works
- 1Enter average monthly revenue per customer, gross margin, and lifespan.
- 2Optionally add your CAC to get the LTV:CAC ratio.
- 3See the lifetime value each customer represents.
Use cases
- Gauge how much you can afford to spend acquiring a customer.
- Check the LTV:CAC ratio against the 3:1 rule of thumb.
- Model the impact of improving retention or margin.
Frequently asked questions
How is LTV calculated here?
Average monthly revenue per customer × gross margin × average lifespan in months. It uses gross-margin dollars, not raw revenue.
What is a good LTV:CAC ratio?
A common benchmark is 3:1 or higher. Much higher can mean you are under-investing in growth; below 1:1 you lose money per customer.
Is my data stored?
No. Everything runs in your browser.
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