5.0
4.9
HubSpot
4.9
LTV:CAC Calculator
Know Your LTV:CAC
Before You Scale.
Calculate whether your customer acquisition is profitable — and what it will take to grow sustainably.
Customer Acquisition Cost (CAC)
CAC = (Marketing + Sales) ÷ New Customers
$
$
Customer Lifetime Value (LTV)
LTV = Monthly AOV × Lifespan (months)
$
mo
Include Gross Margin
Recommended for a more accurate LTV
Your LTV:CAC Results
Updates as you adjust your inputs above
Live
CAC
$200
per customer
LTV
$12,000
per customer
Gross Margin
—
of revenue
LTV:CAC Ratio
60:1
Ready to scale
Where you sit on the spectrum
Break Even (1:1)
Healthy (3:1)
Scalable (5:1)
Scale Now (10:1+)
Ratio Benchmarks
Below 1:1
Danger Zone
Spending more to acquire customers than they are worth. Urgent intervention needed.
Sweet Spot
3:1
Healthy & Sustainable
Ideal benchmark for most B2B businesses. Good retention and reasonable acquisition costs.
5:1+
Room to Scale
You are under-investing in acquisition. Increase paid media spend to unlock faster growth.
You have room to scale aggressively.
Your LTV:CAC is well above the 3:1 benchmark. Your unit economics support significantly higher paid media investment — increasing spend now should accelerate profitable growth.
Next Step
Calculate Your Paid Media Budget
You know your LTV:CAC — now find out exactly how much you should be spending on paid media to hit your revenue targets.
Open Budget Calculator →
Get Expert Help
Optimize Your LTV:CAC with Parkyd Digital
Our strategists will help you build a plan to reduce CAC, improve retention, and scale profitably.
Book a Free Strategy Call →