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MyDailyTool

LTV / CAC Calculator

Calculate customer lifetime value (LTV), customer acquisition cost (CAC), LTV:CAC ratio, and CAC payback period. Core SaaS and e-commerce metrics for assessing unit economics.

LTV
$1,166.67
LTV / CAC
5.83×
Payback (mo)
5.7

How to use the ltv / cac calculator

Enter monthly ARPU, gross margin %, monthly churn rate %, and CAC. LTV, LTV/CAC ratio, and CAC payback period are computed.

Formula & explanation

LTV = (ARPU × margin) ÷ churn rate. LTV/CAC ratio: target ≥ 3. Payback (months) = CAC ÷ (ARPU × margin).

Examples

50 ARPU, 70% margin, 3% monthly churn, 200 CAC → LTV ≈ 1,167, ratio 5.83, payback 5.7 months.

Frequently asked questions

Healthy benchmarks?
SaaS heuristics: LTV/CAC ≥ 3, payback < 12 months. Aggressive growth allows higher CAC short-term.

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