CALCULATOR
Model viability: LTV vs CAC
Four numbers in, one number out: for every euro you spend acquiring a customer, how many euros come back over their lifetime, and how long until you break even on them.
Your numbers
The typical monthly bill, subscription, or repeat purchase from one customer. One-off business? Use yearly revenue and set lifetime to 12.
What stays after the direct cost of delivering one unit of your product or service.
How many months a typical customer stays before leaving. Use observed retention if you have it.
Total marketing and sales spend over a period, divided by the number of new customers won in that same period.
Your result
LTV / CAC ratio
5.8×
Excellent. Either acquisition is unusually cheap or retention is unusually strong. Verify the inputs are realistic, then invest more in acquisition.
Lifetime value (LTV)
€2,880.00
total profit per customer
Payback period
4.2 months
to recover acquisition cost
What this means for you
- ·Your model can sustain spending up to €960.00 to win one new customer and still grow profitably.
- ·Each new customer is worth roughly €2,880.00 in gross margin over their lifetime, before reinvestment.
- ·Tracking this ratio every quarter detects model drift well before it becomes a problem.
Lifetime value assumes the customer behaves like the average. Acquisition cost should include all marketing, sales salaries, agency fees and tools.
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For information only. This calculator is for educational purposes only. Results are estimates based on the inputs you provide and do not constitute financial, accounting, tax, or legal advice. For decisions that affect your business, consult your accountant or a qualified advisor.