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LTV, CAC & payback

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Customer lifetime value (LTV)3,333.33
Customer acquisition cost (CAC)500
LTV : CAC6.67 ×
CAC payback (months)5
Average lifetime (months)33.33
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Worked example

Given: Monthly revenue per customer (ARPA) = 125; Gross margin = 80 %; Monthly customer churn = 3 %; Sales & marketing spend (period) = 30,000; New customers in that period = 60

Result: Customer lifetime value (LTV) = 3,333.33; Customer acquisition cost (CAC) = 500; LTV : CAC = 6.67 ×; CAC payback (months) = 5; Average lifetime (months) = 33.33

How it is calculated

1. Enter the values you know. 2. The calculator converts them to base units and applies the formula. 3. The result is shown in the unit you choose.

Frequently asked questions

How do I calculate it?

Given: Monthly revenue per customer (ARPA) = 125; Gross margin = 80 %; Monthly customer churn = 3 %; Sales & marketing spend (period) = 30,000; New customers in that period = 60. Result: Customer lifetime value (LTV) = 3,333.33; Customer acquisition cost (CAC) = 500; LTV : CAC = 6.67 ×; CAC payback (months) = 5; Average lifetime (months) = 33.33.

Is the calculator free and private?

Yes. It is free, needs no sign-up and runs in your browser — the numbers you type stay on your device.

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Updated November 15, 2026