Free tool
CAC & LTV Calculator
Calculate your Customer Acquisition Cost and Lifetime Value to understand your unit economics. See your LTV:CAC ratio, payback period, and get actionable recommendations to improve profitability.
Your unit economics
Fill in your details and click Calculate to see your CAC, LTV, and unit economics.
How these metrics are calculated
Customer Acquisition Cost
CAC is your total monthly sales and marketing spend divided by the number of new customers acquired that month. It tells you how much you pay to win each new customer.
Lifetime Value
LTV is calculated as average revenue per customer per month, multiplied by your gross margin, multiplied by the average customer lifespan in months. It represents the total gross profit a customer generates over their relationship with you.
The LTV:CAC Ratio
This ratio shows how much lifetime value you generate for every dollar spent on acquisition. A ratio of 3:1 to 5:1 is generally considered healthy for SaaS businesses, meaning you earn three to five dollars for every dollar invested in growth.