LTV & CAC Calculator
Calculate customer acquisition cost and lifetime value to gauge marketing efficiency
Enter your marketing spend and new customer count to get customer acquisition cost (CAC), then add average order value, purchase frequency, and retention period to get customer lifetime value (LTV). The tool grades the health of your business automatically based on the LTV:CAC ratio, making it useful for startup founders, marketers, and e-commerce operators. Everything is calculated in your browser and none of your inputs are sent to a server.
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🔒 Everything runs 100% in your browser. Your files and input are never uploaded to any server.
How to use
- Enter your total marketing spend and the number of new customers acquired to calculate CAC
- Enter your average order value, annual purchase frequency, and average customer lifespan to calculate LTV
- Review the LTV:CAC ratio and the color-coded business health grade calculated for you
- Use the diagnostic notes to decide whether to adjust marketing budget or focus on retention
FAQ
- What's a good LTV:CAC ratio?
- A ratio between 3:1 and 4:1 is generally considered the sweet spot. Below 1:1 you're losing money on acquisition, while a ratio well above 5:1 often signals you could invest more in marketing to accelerate growth.
- Is my data saved?
- No. Every calculation happens in your browser, and nothing is sent to a server or stored.
- What formula does the LTV use?
- This tool uses the simple formula: average order value × annual purchase frequency × customer lifespan in years. It doesn't factor in margins or discount rates, so treat it as a quick directional estimate rather than a rigorous model.