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.
CALCULATED ANSWER
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
Should LTV use revenue or profit?
Use gross-profit LTV when possible. Revenue LTV can overstate profitability.
Is 3× always a good LTV:CAC ratio?
No. It is a common reference, not a universal pass line; payback, fixed costs, and industry economics differ.