Value comfortably exceeds acquisition cost; check whether it can scale.
LTV:CAC ratio and payback calculator
Enter customer lifetime value, acquisition cost, monthly ARPU, and gross margin to calculate LTV:CAC and estimated payback.
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YOUR ASSUMPTIONSChange a number. The answer updates immediately.
LTV:CAC3.00×
Estimated payback4.8 months
Check how much customer value covers the cost of acquiring that customer.
FORMULA
Analyze LTV:CAC by channel →LTV ÷ CAC · CAC ÷ (monthly ARPU × gross margin)HOW TO READ IT
Use the answer as a decision boundary
Potentially viable, but payback and operating costs still matter.
Customer value does not cover acquisition cost under these assumptions.
Questions before using this number
Use gross-profit LTV when possible. Revenue LTV can overstate profitability.
No. It is a common reference, not a universal pass line; payback, fixed costs, and industry economics differ.