Customer Economics Calculator
LTV:CAC Calculator
Estimate customer lifetime value and compare it against acquisition cost using revenue, purchase frequency, margin and customer lifespan.
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Customer Economics
Enter your average customer economics to estimate contribution LTV and CAC efficiency.
years
Contribution LTV0.00
Estimated lifetime contribution before acquisition cost.
LTV:CAC Ratio0.00 : 1
Contribution LTV generated for every unit spent acquiring a customer.
Lifetime Revenue0.00
Annual Contribution0.00
CAC0.00
Estimated Payback0 months
How this LTV model works
Lifetime RevenueAOV × Orders per Year × Customer Lifespan
Contribution LTVLifetime Revenue × Gross Margin
LTV:CACContribution LTV ÷ CAC
Estimated PaybackCAC ÷ Monthly Contribution
What is a good LTV:CAC ratio?
There is no universal target. Higher ratios generally indicate more contribution generated relative to acquisition cost, but very high ratios can also indicate that a business may be under-investing in growth.
The appropriate ratio depends heavily on cash flow, retention, operating expenses, growth targets and how accurately customer lifetime behavior can be forecast.
Simplified model:This calculator assumes average purchase frequency, customer lifespan and gross margin remain stable. It does not model cohort retention, churn curves, discount rates, refunds, overhead or changes in customer behavior over time.