How do I use the LTV to CAC ratio calculator?
- Enter average monthly revenue per customer and your gross margin.
- Enter monthly churn (customers lost each month).
- Enter marketing and sales spend and new customers won in the same period.
LTV to CAC ratio calculator: frequently asked questions
What is a good LTV:CAC ratio?
A common benchmark is 3:1 or better. Much higher can mean you are under-investing in growth.
How is LTV calculated here?
Monthly revenue per customer × gross margin × average lifetime, where lifetime = 1 ÷ monthly churn.
What goes into CAC?
All marketing and sales costs for the period — ads, tools, salaries, agencies — divided by new customers.
What is CAC payback?
Months of gross profit needed to recover the cost of acquiring a customer.
How do I improve the ratio?
Reduce churn, raise prices or margin, and focus spend on channels with the lowest CAC.
Is my data stored?
No. It runs in your browser.
Are these calculations based on UAE rules?
Where a UAE rule applies (VAT, labour law, mortgage limits) the tool follows it and names the source. Rules change, so confirm important figures with the relevant authority.
Is the ltv to cac ratio calculator free?
Yes. It is free with no sign-up and no usage limits for normal use.
Is my data sent to your servers?
No. This tool runs entirely in your browser, so what you type never leaves your device.
Does it work on my phone?
Yes. The tool works in any modern browser on iPhone, Android, tablet or computer.