Customer LTV & CAC Calculator
Calculate acquisition cost and lifetime value to gauge marketing efficiency
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🔒 Everything runs 100% in your browser. Your files and input are never uploaded to any server.
This tool calculates Customer Acquisition Cost (CAC) from your marketing spend and new customer count, and Lifetime Value (LTV) from average order value, purchase frequency, and customer lifespan. It automatically diagnoses your business health based on the LTV:CAC ratio, making it handy for startup founders, marketers, and e-commerce operators. All calculations happen right in your browser, with nothing sent to a server.
How to use
- Enter your total marketing budget and number of newly acquired customers to calculate CAC
- Enter average order value, annual purchase frequency, and average customer lifespan to calculate LTV
- Check the automatically computed LTV:CAC ratio and the color-coded business health rating
- Use the diagnostic message to review whether to adjust marketing spend or improve retention
FAQ
- What's a healthy LTV:CAC ratio?
- A ratio between 3:1 and 4:1 is generally considered ideal. Below 1:1 means your marketing is unprofitable, while a ratio well above 5:1 may signal you're under-investing and could grow faster by spending more.
- Is my data saved anywhere?
- No. All calculations run entirely in your browser and nothing is sent to or stored on a server.
- How is LTV calculated here?
- This tool uses a simplified formula: average order value × annual purchase frequency × customer lifespan in years. It doesn't factor in margin or discount rates, so treat it as a quick diagnostic rather than a precise financial model.