SMB Tools / LTV : CAC Calculator
Can you afford to grow faster?
Growth comes down to one comparison: what a customer is worth over their lifetime versus what they cost to win. See the ratio and how fast you earn the cost back, so you know whether to push harder on acquisition.
Each customer
Average order value
$
Purchases per year
Gross margin
%
Average customer lifespan
years
Acquisition cost
Sales + marketing spend
$
New customers acquired
Cost to acquire a customer$50
LTV : CAC ratio
21.6 : 1
A strong 21.6 : 1. You may even be under-spending on growth - there could be room to acquire harder and still profit.
- Lifetime value
- $1,080
- Acquisition cost
- $50
- CAC payback
- 1.7 mo
Order value × purchases/yr × margin$360/yr
× 3.0 year lifespan$1,080
Cost to acquire-$50
Return per customer21.6 : 1
A directional read - real lifetime value hinges on retention, which is hard to predict. Check campaign payback in the Marketing ROI tool →