Marketing & Ads

CAC & LTV Calculator

Compare what it costs to win a customer (CAC) with the profit they bring over time (LTV) — and how long it takes to earn back your marketing spend.

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Your numbers

$

For the same period as new customers

$
%

After product, fees and shipping

years

Results

LTV : CAC ratio

2.88 : 1

Below 3:1 — acquisition may be too expensive for the value customers bring.

Customer acquisition cost (CAC)
$50.00
Customer lifetime value (LTV, gross profit)
$144.00
Months to earn back CAC
8.3

Download your results

Branded KleverKlimb report with your inputs and results.

How it works

The formula

Exactly what this calculator does with your numbers — no hidden assumptions.

01groups

CAC

CAC = marketing spend ÷ new customers won in the same period.

02savings

LTV

LTV = AOV × orders per year × gross margin × years. Using margin (not revenue) shows the profit a customer really brings.

03hourglass_bottom

Payback

Months to earn back CAC = CAC ÷ monthly gross profit per customer. Shorter payback means less cash tied up in growth.

FAQ

Questions, answered

Q1What is a good LTV:CAC ratio?
A common benchmark is 3:1 or better. Below 1:1 you lose money on every customer; far above 5:1 may mean you could grow faster by spending more on acquisition.
Q2Why use gross margin in LTV?
Revenue-based LTV overstates customer value because it ignores product, fee and shipping costs. Gross-margin LTV is the profit you can compare fairly against CAC.
Q3How do I estimate customer lifespan?
Use your repeat-purchase data — how long customers keep buying on average. If you are new, start conservatively (1–2 years) and update as data comes in.
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