Customer LTV Calculator — Lifetime Value & CAC Ratio Tool

Calculate Customer Lifetime Value with gross margin, purchase frequency, and customer lifespan. See your LTV:CAC ratio and payback period.

Practical example: $99/mo, 2-year retention. For a self-serve saas scenario, enter the values that match your situation to get an instant cost estimate.

What is a good LTV:CAC ratio? 3:1 is considered the minimum healthy ratio for SaaS. 4-6:1 is excellent. Above 6:1 may indicate you're under-investing in growth. Below 3:1 means your acquisition costs are too high relative to customer value.

Formula: customerLTV = avgPurchaseValue × purchaseFrequency × customerLifespan × (grossMargin / 100) | ltvCacRatio = customerLTV / acquisitionCost | paybackMonths = acquisitionCost / (avgPurchaseValue × (grossMargin / 100))