LTV:CAC Ratio Calculator

Check your unit economics

The ratio of customer lifetime value to acquisition cost is the core measure of a business model’s health. This calculator computes LTV, the LTV:CAC ratio and payback period from your inputs, so you can judge whether your economics work.

Why LTV:CAC is the health check

A business is only viable if a customer is worth more than it costs to acquire them, and the LTV:CAC ratio captures exactly this: how many times over a customer’s lifetime value exceeds their acquisition cost. A ratio well above one means healthy economics; near or below one means you lose money on each customer. The payback period, how long until a customer’s revenue recovers their acquisition cost, matters too, because a great ratio with a long payback strains cash flow. These are the numbers investors and operators watch to judge whether growth is sustainable.

A planning estimate

This is an estimate for planning from the figures you enter, not financial or business advice. Real outcomes depend on factors beyond any single calculation, so treat the result as a guide. The calculation runs entirely in your browser, so your figures are never uploaded and stay on your own machine, which matters for business numbers you would not want to share.

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