FREE TOOL · UNIT ECONOMICS
CAC & LTV Calculator
Know what a customer truly costs and what they are worth. Get your CAC, lifetime value, LTV:CAC ratio, and payback period in one view.
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CAC
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Lifetime Value
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LTV : CAC
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CAC Payback
A healthy business runs an LTV:CAC of 3:1 or better and recovers CAC in under 12 months. Below 1:1 you lose money on every customer; far above 5:1 usually means you are under-investing in growth.
Frequently asked questions
What is a healthy LTV to CAC ratio?
A ratio of 3 to 1 or higher is generally considered healthy. Below 1 to 1 you lose money on every customer; far above 5 to 1 often means you are under-investing in growth.
How do you calculate CAC?
Divide your total sales and marketing spend by the number of new customers acquired in the same period.
How do you calculate customer lifetime value?
Multiply average revenue per customer per month by your gross margin and the average customer lifespan in months.
Your LTV:CAC should be higher.
DigiJaws builds acquisition systems engineered to drive CAC down and lifetime value up — at the same time.
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