Free Tool

CAC & LTV calculator — free unit economics tool

Model Customer Acquisition Cost, Lifetime Value and the LTV:CAC ratio that determines whether your growth is sustainable.

Total sales & marketing spend

Over a chosen period (e.g. one month).New customers acquired

In the same period.Average revenue per user / month

Gross margin

Monthly churn rate

% of customers who cancel each month.

Results

LTV : CAC ratio10.50:1

CAC$200.00

LTV$2,100.00

Avg. customer lifetime25.0 mo

CAC payback period2.4 mo

Rule of thumb: aim for LTV:CAC ≥ 3:1 and payback under 12 months for SaaS.

Guide

CAC, LTV and the ratio that matters

CAC (Customer Acquisition Cost) is what you spend, on average, to win a customer. LTV (Lifetime Value) is the gross profit that customer generates before they churn. The ratio tells you whether your growth engine compounds — or leaks.

Formulas

CAC = Sales & Marketing Spend / New Customers
Avg. Lifetime = 1 / Monthly Churn
LTV = ARPU × Gross Margin × Avg. Lifetime
LTV:CAC = LTV / CAC
Payback = CAC / (ARPU × Gross Margin)

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Thrivio ties ad spend to cohorts and shows CAC and LTV by channel automatically.

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