Formula
Simplified LTV = monthly revenue per customer × gross margin ÷ monthly churn. LTV:CAC = LTV ÷ CAC.
BUSINESS
LTV to CAC Calculator
Estimate customer lifetime value, acquisition cost ratio and CAC payback.
CALCULATOR GUIDE
How to use the LTV to CAC Calculator
Estimate SaaS or subscription customer lifetime value, the LTV-to-CAC ratio and gross-margin CAC payback period.
Worked example
At $100 monthly revenue, 80% gross margin and 4% monthly churn, estimated LTV is $2,000; a $500 CAC gives a 4.0× ratio.
Assumptions and limits
The simplified churn model assumes a stable cohort and constant economics. Cohort-based or discounted cash-flow analysis may be more appropriate.
Frequently asked questions
What does an LTV:CAC ratio measure?
It compares estimated gross-margin customer lifetime value with the cost to acquire that customer.
Why use gross margin in LTV?
Revenue is not all available to recover CAC; direct service or product costs reduce economic value.
How this calculator works
Enter your known values and select Calculate result. Review units and inputs before relying on the planning estimate.
Actual quantities, prices and requirements can vary. Confirm critical work with a supplier or qualified professional.