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CAC & Customer Lifetime Value Calculator

Compare customer acquisition cost with contribution-based lifetime value and a simple payback estimate.

Your numbers

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Contribution-based customer lifetime value
$384.00

USD · rounded to the nearest cent

Acquisition cost (CAC)$100.00
LTV / CAC3.84
Modeled CAC payback9.375months

Undiscounted cohort approximation, not a churn or retention model. Use acquisition-only sales/marketing spend and contribution profit after relevant variable costs. No universal ratio target is implied.

Your calculation, step by step

No black boxes
  1. CAC = acquisition spend / new customers = 100.
  2. LTV = average order value × contribution margin × orders/year × lifespan.
  3. Payback = CAC / modeled annual contribution × 12.

What if things were different?

Save up to three scenarios, then change your inputs to compare the possibilities.

How to use this calculator

  1. Enter your own values in the labeled fields. Check the units and assumptions before comparing results. Only the fields needed for your selected calculation mode are shown.
  2. Your answer updates automatically. Review the calculation steps to see exactly how it was calculated.
  3. Copy, share, save, or download your result. Saved inputs stay on this device.

How the calculation works

CAC=acquisition spend/new customers; LTV=order value × margin × annual frequency × lifespan

Use contribution profit after relevant variable costs, not total sales, for lifetime value. The model assumes constant annual frequency and a fixed lifespan; it does not infer retention, churn or discounted future value. No universal target ratio is applied. Review the units, period and assumptions before comparing scenarios. Displayed values are rounded, while the underlying calculation retains its available precision.

A worked example

$10,000 acquisition spend for 100 customers gives $100 CAC. $80 orders at 40% contribution, 4 times a year for 3 years, give $384 LTV.

Reading your result

Use the main result together with its units and supporting figures. Display values are rounded; calculations keep their underlying precision. A change in inputs or assumptions can change the answer. Compare the step-by-step working with your intended use before relying on an estimate.

Frequently asked questions

What assumptions does this calculation use?

Use contribution profit after relevant variable costs, not total sales, for lifetime value. The model assumes constant annual frequency and a fixed lifespan; it does not infer retention, churn or discounted future value. No universal target ratio is applied.

Can I save or check a scenario?

The result includes the working and supporting values. Save and Restore keep inputs on this device; Copy, Download and Print export the result. Sharing a scenario explicitly includes the inputs in its link.

Sources & methodology

This calculator uses the mathematical identity and assumptions stated above. No current rates, prices, or external data are loaded. Conversion tools use international unit definitions.

Formula review: October 24, 2026. Read our methodology.