LTV:CAC Ratio Calculator

Compare what a client is worth over their lifetime with what it costs to win them. A healthy service business aims for at least 3:1.

Client acquisition costs (monthly)

Marketing & advertising spend

Sales team cost (salaries & commissions)

Other acquisition costs (tools, events, referrals)

New clients won per month0

050100

Client value

Average monthly revenue per client

One-time setup or onboarding fee

Gross margin0%

0%50%100%

Average client lifetime0 months

060120

Estimated results

LTV:CAC ratio0.0:1

Customer lifetime value (LTV)$0.00

Customer acquisition cost (CAC)$0.00

CAC payback period0.0 months

Calculation breakdown

Total monthly acquisition cost$0.00

Lifetime revenue per client$0.00

Gross profit per client per month$0.00

Net profit per client after acquisition cost (LTV − CAC)$0.00

Maximum CAC for a 3:1 ratio$0.00

LTV needed for a 3:1 ratio$0.00

Unit economics healthEnter your numbers

These are estimates, not a guarantee. LTV is calculated on gross profit (revenue × gross margin, including any setup fee) over the average client lifetime, and CAC is total acquisition cost divided by new clients won. Results exclude discounting, taxes, and overhead, and depend on the accuracy of your inputs.