Choose one measurement period
Use inputs from the same weekly, monthly, quarterly, or customer-cohort period so the comparison remains meaningful.
Free customer economics calculator
See whether customer acquisition economics support sustainable growth.
Compare fully loaded customer acquisition cost with gross-margin lifetime value, payback time, and the acquisition cost allowed by your own target ratio.
Free · Private · No signup
CAC, LTV and payback calculator
Acquisition cost · Lifetime gross value · Ratio · Payback
Runs entirely in your browser
Interactive planning tool
Use your numbers. Inspect the assumptions.
Your entries stay in this browser. Results update immediately and are planning estimates—not forecasts or guarantees.
9.50:1
Estimated gross-margin LTV to fully loaded CAC.
$500customer acquisition cost
$4,752gross-margin lifetime value
3.8 moestimated CAC payback
$1,584CAC at your target ratio
At or above your selected target
Validate retention, cohort margin, sales allocation, refunds, and cash timing before changing spend.
Five-minute workflow
How to use the CAC, LTV and payback calculator.
Consistent periods and clearly labeled assumptions make the output easier to compare, explain, and improve.
Enter evidence and run a scenario
Start with actual business data where available, then use clearly labeled assumptions for values you do not yet know.
Compare, validate, and update
Run conservative, expected, and optimistic cases. Replace estimates with measured sales, margin, customer, and campaign data over time.
Use the result well
A number becomes useful when the decision behind it is clear.
Match the cohort
Do not compare this month’s spend with customers acquired across an unrelated period. Align cost, acquisition, and value windows.
Treat retention as uncertain
Small changes in lifespan can materially change LTV. Run a conservative retention scenario and compare it with observed cohorts.
Protect cash flow
A strong lifetime ratio can still strain the business when acquisition cost is paid now and customer value arrives slowly.
Method and limitations
Transparent arithmetic, cautious interpretation.
CAC = marketing and sales cost ÷ new customers acquired. Gross-margin LTV = average purchase value × purchases per year × customer lifespan × gross margin. Payback uses average monthly gross value.
Questions, answered
Definitions and decisions behind the estimate.
Use the marketing and sales costs required to acquire the measured customer cohort. Depending on the decision, that may include media, agencies, content, software, payroll, commissions, events, and allocated overhead.
Revenue LTV can overstate the value available to recover acquisition cost. Gross-margin LTV removes the direct cost of delivering the product or service, while still excluding overhead and financing effects.
No universal ratio fits every business. Growth stage, cash timing, churn risk, working capital, delivery capacity, and the completeness of cost allocation all matter. The calculator lets you enter your own target.
It estimates how many months of average gross value are needed to recover acquisition cost. It assumes value arrives evenly, so it can mislead when payments, churn, refunds, or delivery costs are uneven.
Need another planning lens?
Use the complete collection for marketing, unit economics, website conversion, ROI, and break-even decisions.
Ready when you are
Get a free auditTurn the estimate into an evidence-based growth plan.
Bring the assumptions, current customer journey, and business outcome. We’ll identify what should be measured, improved, or tested first.