LTV Calculator

Calculate customer lifetime value and LTV:CAC ratio — essential metrics for sustainable growth.

$900.00
LTV
7.50:1
LTV:CAC
~146
Payback days
$300.00
Annual value

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

About this tool

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 the LTV Calculator

  1. 1

    Enter average order value, purchase frequency, and customer lifespan.

  2. 2

    Add customer acquisition cost to compute the LTV:CAC ratio.

  3. 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.

Pro tips

  • Segment LTV by acquisition channel — not all customers are equal.
  • Compare LTV:CAC before increasing ad budgets.

Social Media Specs & Character Limits

Optimal text formatting, length guidelines, and parameters for all major platforms:

PlatformMax LengthIdeal LengthHashtag Policy
Instagram Feed & Reels2,200 chars125 - 150 chars3 - 5 tags (Recomm.)
TikTok Posts4,000 chars100 - 200 chars3 - 5 tags (Ideal)
YouTube Description5,000 chars1,500 chars (SEO)3 - 10 tags
X / Twitter Post280 chars100 - 140 chars1 - 2 tags
LinkedIn Articles & Posts3,000 chars500 - 1,000 chars3 - 5 tags

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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.