Free tool

CAC and LTV:CAC calculator.

CAC is ad spend divided by new customers. LTV is monthly revenue per customer × gross margin × months retained. Compare them to see whether your ads are profitable to scale.

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Ad spend (period)

$

New customers (same period)

Monthly revenue per customer

$

Gross margin

%

Average months a customer stays

CAC

$500

LTV

$960

LTV:CAC

1.9:1

Payback (months)

6.3

FAQ

Frequently asked questions.

Many subscription businesses aim for around 3:1. Lower can mean you're overpaying for customers; much higher can mean you're under-investing in growth.