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CAC & LTV Calculator

Calculate customer acquisition cost, lifetime value, and the LTV:CAC ratio.

How this is calculated
CAC = spend ÷ new customers. LTV = avg purchase value × purchase frequency × customer lifespan

Assumptions used in this calculation

  • LTV based on projected behavior: Customer lifetime value is a forward-looking estimate from assumed average purchase value, purchase frequency, and customer lifespan; it is not derived from observed cohort retention data, so actual LTV may differ from the projection.

About this calculator

Calculates Customer Acquisition Cost (CAC), Customer Lifetime Value (LTV), and the LTV:CAC ratio, consolidating the master prompt's separate CAC and LTV calculators, since the ratio between them is the metric that actually matters for business decisions.

Worked example

₹5,00,000 spend, 200 customers, ₹1,500 avg purchase, 4x/year, 3-year lifespan

Result: CAC = ₹2,500, LTV = ₹18,000, ratio = 7.2:1

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