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LTV to CAC Ratio Calculator

Last updated: October 15, 2026

Calculate customer lifetime value, acquisition cost ratio, gross-margin payback period and maximum CAC for a target ratio.

Estimated LTV to CAC ratio

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  • Estimated gross-margin customer LTV: —
  • Gross-margin CAC payback period: —
  • Maximum CAC at target ratio: —
  • Gross profit per customer per month: —
On this page

Quick summary: Calculate customer lifetime value, acquisition cost ratio, gross-margin payback period and maximum CAC for a target ratio.

Updated October 14, 2026 • Estimated reading time: 4 minutes
Read the complete guide

What this calculator estimates

Calculate customer lifetime value, acquisition cost ratio, gross-margin payback period and maximum CAC for a target ratio.

How to use it

Enter Monthly revenue per customer ($); Gross margin (%); Monthly customer churn (%); Customer acquisition cost ($); Target LTV to CAC ratio. Select Calculate to update the results.

How the calculation works

Gross profit per customer is monthly revenue multiplied by gross margin. A simple churn-based lifetime value divides monthly gross profit by monthly churn, then compares LTV with CAC.

Worked example: starting scenario

Example inputs
Monthly revenue per customer ($)250
Gross margin (%)80
Monthly customer churn (%)3
Customer acquisition cost ($)1800
Target LTV to CAC ratio3
Example results
Estimated LTV to CAC ratio3.7×
Estimated gross-margin customer LTV$6,666.67
Gross-margin CAC payback period9 months
Maximum CAC at target ratio$2,222.22
Gross profit per customer per month$200.00

Important limitations

This simplified formula assumes stable churn and margin. Cohort retention, expansion, discounting, onboarding, support costs and channel mix can change true unit economics.