Estimate LTV (Lifetime Value) and the maximum CAC (Customer Acquisition Cost) you can afford to hit a target LTV:CAC ratio.
Set CAC guardrails
Understand how much you can spend per customer.
Align sales spend
Match CAC targets with margin and churn.
Improve payback health
Optimize acquisition costs for sustainable growth.
Estimate LTV (Lifetime Value) and the maximum CAC (Customer Acquisition Cost) for a target ratio.
Results
Enter your inputs to see a plain-English interpretation of the results.
This calculator estimates LTV (Lifetime Value) from ARPU (Average Revenue Per User), gross margin, and churn, then derives the maximum CAC (Customer Acquisition Cost) for your target LTV:CAC ratio.
Use it to set acquisition budgets that align with healthy unit economics.
LTV (Lifetime Value)
Estimated gross value of a customer over their lifetime.
CAC (Customer Acquisition Cost)
The average cost to acquire a new paying customer.
ARPU (Average Revenue Per User, monthly)
Average revenue generated per user per month.
Gross margin
Revenue minus variable costs, expressed as a percentage.
Churn (monthly)
The percentage of customers who cancel each month.
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