Free acquisition economics tool

LTV-to-CAC Ratio Calculator

Measure whether customer acquisition spending is economically sustainable by comparing customer lifetime value with the cost to acquire each customer.

Simple calculator

Enter customer value and acquisition cost

Updates live

Customer lifetime value

Average monthly revenue / customer

Gross margin

Average customer lifetime

months

Customer acquisition

Total sales & marketing spend

New customers acquired

customers

Target LTV : CAC ratio

: 1

Core economicsLTV = monthly revenue × gross margin × customer lifetime. CAC = acquisition spend ÷ new customers. LTV:CAC = LTV ÷ CAC. CAC payback = CAC ÷ monthly gross profit per customer.

Advanced calculator

Model retention and customer contribution

Full unit economics

Customer economics

Starting monthly revenue / customer

Gross margin

Monthly revenue expansion

% / mo.

Optional expansion or contraction among retained customers. Monthly customer churn

Monthly servicing cost / customer

Variable success, support, fulfillment or account-management cost not already in gross margin. Onboarding cost / customer

Maximum LTV horizon

months

Annual discount rate

Acquisition spending

Marketing spend

Sales payroll / commissions allocated to acquisition

Tools / agency / acquisition overhead

New customers acquired

customers

Growth target

Target LTV : CAC ratio

: 1

Monthly acquisition budget

Desired new customers / month

customers

Advanced LTVThe model projects monthly contribution from a customer cohort, applies churn, optional revenue expansion and discounting, then subtracts onboarding cost. CAC includes marketing, sales and other acquisition spend allocated across new customers.

Advanced result

Acquisition sustainability

Discounted LTV : CAC—Contribution-based customer value

Customer acquisition cost$0All entered acquisition spend

CAC payback period—Based on recurring monthly contribution

Discounted customer LTV$0

Undiscounted modeled LTV$0

Month 1 contribution / customer$0

Approx. lifetime from churn—

Maximum CAC at target ratio$0

CAC headroom$0

Customers budget can acquire0

Budget needed for desired customers$0

Modeled value created / acquired customer$0

Acquisition spend as % of LTV—

Economics signal—

Target ratio—

Monthly churn—

Revenue expansion—

Discount rate—

OfficeQ readout

Economics bridge

From customer contribution to LTV : CAC

Current assumptions

Step	Calculation	Value

CAC sensitivity

LTV : CAC at different acquisition costs

Customer value held constant

CAC	LTV : CAC	Value after CAC	CAC as % of LTV	Signal

Churn sensitivity

Impact of retention on acquisition economics

CAC held constant

Monthly churn	Approx. lifetime	Discounted LTV	LTV : CAC	Max CAC at target ratio

Target-ratio ladder

Maximum sustainable CAC at different ratio targets

Same customer LTV

Target LTV : CAC	Maximum CAC	Headroom vs current CAC	Acquisition spend share of LTV	Signal

Scope

Ratio quality depends on the inputs behind it

This calculator is a planning model. A high LTV:CAC ratio can indicate efficient acquisition, but it can also reflect underinvestment in growth. A low ratio can indicate unsustainable acquisition spending or an intentionally aggressive growth strategy. Use comparable customer cohorts, consistent cost allocation and a realistic value horizon. The model does not include fixed corporate overhead, taxes, financing costs or cash-timing effects unless those costs are incorporated into the entered assumptions.