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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.