LTV Calculator
Calculate customer lifetime value and LTV:CAC ratio — essential metrics for sustainable growth.
LTV:CAC ≥ 3 — healthy unit economics
Growth scenarios
New LTV: $990.00 (+10.0%)
New LTV: $1,035.00 (+15.0%)
LTV Summary ─────────── AOV: $75.00 Purchases/year: 4 Customer lifespan: 3 years LTV: $900.00 CAC: $120.00 LTV:CAC ratio: 7.50:1 Payback period: ~146 days Status: Healthy unit economics
What this tool does
Customer lifetime value determines how much you can afford to spend on acquisition — without LTV, CAC targets are guesswork.
Calculate LTV and LTV:CAC ratio from order value, frequency, and lifespan inputs.
How to use it
- 1
Enter average order value, purchase frequency, and customer lifespan.
- 2
Add customer acquisition cost to compute the LTV:CAC ratio.
- 3
Review whether your unit economics support scaling paid acquisition.
Using LTV in growth decisions
LTV:CAC below 1:1 means you lose money on every customer acquired. Above 3:1 typically supports scaling paid channels.
Update LTV inputs quarterly as retention and AOV shift.
Tips
- Segment LTV by acquisition channel — not all customers are equal.
- Compare LTV:CAC before increasing ad budgets.
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Frequently asked questions
What is a healthy LTV:CAC ratio?▼
A ratio of 3:1 or higher is commonly cited as healthy — meaning each customer returns three times what you spent to acquire them.
Does this upload my business data?▼
No. All calculations happen locally in your browser.