CAC & LTV Calculator

Calculate customer acquisition cost, margin-adjusted lifetime value, your LTV:CAC ratio, and how many months it takes to pay back acquisition spend.

Over a period — ads, agency, tools, salaries attributable to acquisition.

Customer acquisition cost (CAC)$50.00
Customer lifetime value (LTV)$288.00
LTV : CAC ratio5.8 : 1
CAC payback period4.2 months

Very strong. You may even be under-investing in growth.

LTV here uses gross profit (margin-adjusted), not raw revenue — the honest version. Payment fees eat directly into margin; see the Stripe fee calculator for what processing actually costs per order.

Rates last verified: 2026-08-02

Frequently asked questions

How do I calculate customer acquisition cost (CAC)?

Total sales and marketing spend over a period ÷ new customers acquired in that period. Spending $5,000 to acquire 100 customers is a $50 CAC. Include ads, agencies, tools, and salaries attributable to acquisition — not just ad spend.

What is a good LTV to CAC ratio?

The classic benchmark is 3:1 or better — each customer returns at least three times what they cost to acquire. Below 1:1 you lose money on every customer; far above 5:1 often means you could grow faster by spending more.

How is customer lifetime value (LTV) calculated here?

AOV × orders per year × gross margin × expected years as a customer. Using gross profit instead of revenue is the honest version — a $288 revenue LTV at 60% margin is only $173 of actual profit to spend on acquisition.

What is CAC payback period?

How many months of gross profit it takes to recover the cost of acquiring a customer. Under 12 months is the common benchmark for subscription businesses; ecommerce ideally pays back on the first order or two.

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<p>Calculator by <a href="https://stopbyte.com/tools/cac-calculator">StopByte CAC & LTV Calculator</a></p>