Marketing & AdsFree tool
LTV to CAC Calculator
Compare what it costs to win a customer with what that customer is worth over time.
How it works
CAC = Marketing spend ÷ New customers
LTV = Average order value × Orders per year × Gross margin × Years as a customer
A ratio of 3:1 or higher is usually healthy. Below 1:1 means you lose money on every new customer. Payback period shows how many months it takes to earn back the acquisition cost.