CAC & LTV Calculator

The single ratio that tells you if your business model works: LTV:CAC. Enter your acquisition spend, customers and revenue, and this returns your customer acquisition cost, lifetime value and whether the two are in a healthy balance.

Need more than the free basics? These numbers only improve when you close more deals from the same pipeline. A CRM like Pipedrive helps your team convert more leads into paying customers.

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The 3:1 rule

CAC is what you spend to win a customer; LTV is the profit they bring over their lifetime. The healthy benchmark is an LTV:CAC of around 3:1 — below 1:1 you lose money on every customer, and far above 3:1 you may be under-investing in growth. Improve it by lowering acquisition cost, raising price, increasing retention, or boosting margin.

Frequently asked questions

What is a good LTV:CAC ratio?

Around 3:1 is the widely-cited healthy target. Below 1:1 means you lose money per customer; much above 3:1 can mean you're under-spending on growth.

How do I calculate CAC?

Total sales and marketing spend divided by the number of new customers it won in the same period. This tool does it for you.

How do I improve these numbers?

Lower acquisition cost, increase retention and price, or improve margin. Closing more of your existing pipeline — with a CRM like Pipedrive — lowers CAC directly.

This tool is free and runs entirely in your browser. The link above is an affiliate link: we may earn a commission if you sign up, at no extra cost to you, and it never changes our honest take.