Customer LTV & CAC Analyst
Analyze your unit economics to ensure your customer acquisition is actually profitable.
Tip: Change one assumption at a time and compare result deltas before making pricing or hiring decisions.
Use this calculator to check whether customer acquisition is financially sensible. It compares customer lifetime value with acquisition cost, shows a discounted version of LTV, and translates the result into a practical health signal for your growth model.
1. Enter customer value assumptions
Average order value, annual purchase frequency, and customer lifespan determine the top-line value a customer can generate over time.
2. Add profit realism
Gross margin adjusts revenue into contribution value. Discount rate reduces future cash flows to a more realistic present value.
3. Add CAC
Customer acquisition cost is the cash you spend to win a customer. That is the denominator that makes the LTV:CAC ratio useful.
4. Review ratio and payback together
Do not rely on ratio alone. Payback period and the qualitative recommendation help you judge whether growth is efficient enough.
Does the Rs / Dollar toggle convert values automatically?
No. It changes the monetary unit only. Enter both AOV and CAC in the same currency.
What is a healthy LTV:CAC ratio?
Many teams use 3x or above as a useful benchmark, but the right threshold depends on payback speed, margin quality, and cash availability.
Why show both simple and discounted LTV?
Simple LTV is easier to read quickly. Discounted LTV is better when you want a more realistic present-value view of future customer cash flows.
What does payback period tell me?
It estimates how long it takes to recover CAC from customer value generation, which matters for cash efficiency and growth planning.