basic

LTV:CAC Ratio and Payback Period Calculator

How much lifetime value each acquisition dollar generates.

Calculates the LTV:CAC ratio (healthy if > 3:1) and the CAC payback period in months = CAC / (monthly revenue per customer × gross margin).

Nadia Almasri By Nadia Almasri
Published Last reviewed 1 min read

Inputs

$
$
$
%

Results

Enter values and click Calculate to see results.
Was this helpful?

How to use this calculator

  1. Fill in the inputs above using the units you already have.
  2. Values update automatically as you type — no submit button needed.
  3. Hover any result row for the underlying formula and intermediate values.

Formula

LTV:CAC = LTV / CAC; Payback = CAC / (MRR × GM%)

In depth

Calculates the LTV:CAC ratio (healthy if > 3:1) and the CAC payback period in months = CAC / (monthly revenue per customer × gross margin).