CAC × LTV Calculator
Calculates customer acquisition cost (CAC), lifetime value (LTV), the LTV/CAC ratio and payback in months. Rates the result: above 3x is healthy, between 1x and 3x is acceptable and below 1x is critical.
- No sign-up
- Runs in your browser
Acquisition (last 90 days or last month)
Customer behavior
Formulas used
- CAC = spend ÷ new customers
- Annual revenue = ticket × purchases/year
- Annual margin = annual revenue × margin %
- LTV = annual margin × lifespan
- LTV/CAC = LTV ÷ CAC
- Payback = CAC ÷ (annual margin ÷ 12)
Health benchmarks
- LTV/CAC ≥ 3×: healthy, standard for mature SaaS and e-commerce
- 1× – 3×: the business sustains itself, but there is little margin to reinvest
- < 1×: each customer generates a loss; without high retention, it won't scale
- Ideal payback: under 12 months for e-commerce and under 24 for SaaS
How it works
How to calculate CAC, LTV and the LTV/CAC ratio
CAC (Customer Acquisition Cost) is everything you spent to win customers divided by how many you actually acquired: CAC = marketing and sales spend ÷ new customers. LTV (Lifetime Value) is how much each customer brings over the whole relationship: LTV = average order value × purchases per year × years retained. The LTV/CAC ratio divides one by the other and shows whether the math works.
Example: you spent R$ 10,000 on ads and closed 100 customers, so your CAC is R$ 100. If the average order value is R$ 150, each customer buys 3 times a year and stays 2 years, the LTV is R$ 900. The LTV/CAC ratio comes out to 9, and payback (R$ 100 of CAC ÷ R$ 450 of first-year revenue) lands at roughly 3 months.
On the health scale, above 3x is usually healthy: you earn far more than you pay to acquire. Between 1x and 3x is okay, but with thin room to grow. Below 1x is critical, because each customer costs more than they return; time to revisit acquisition channels, order value or retention before scaling spend.
FAQ
Frequently asked questions
What are CAC and LTV?
CAC (Customer Acquisition Cost) is what you spend on marketing and sales to win a new customer. LTV (Lifetime Value) is the total revenue or margin that customer generates over the relationship. Together they show whether acquisition pays off.
How do I calculate CAC and LTV?
CAC = total marketing and sales spend / number of customers acquired. LTV = average order value × purchase frequency × customer lifespan. This calculator solves both and also shows the ratio and payback, free in your browser.
What is a good LTV/CAC ratio?
The LTV/CAC ratio shows how many times a customer pays back the acquisition cost. The calculator uses these benchmarks: above 3x is healthy, above 1x is ok, and below 1x is critical (you lose money on every sale).
What is CAC payback in months?
Payback is how long a customer takes to recover their acquisition cost in margin. The tool calculates it in months: the shorter, the faster your cash returns. For e-commerce, short paybacks free up faster reinvestment in ads.
Is the CAC and LTV calculator free?
Yes, Batedor's CAC and LTV Calculator is 100% free, with no signup, and runs right in your browser. It's built for e-commerce that wants to understand retention and check whether acquisition spend pays for itself.
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