Financial Tools

LTV / CAC Calculator

Measure customer lifetime value against acquisition cost.

Business Metrics

₹5,000
₹100₹1,00,000
80%
10%100%
5%
1%20%
₹5,00,000
₹10,000₹1,00,00,000
50
11,000

Customer LTV

₹80,000

CAC

₹10,000

LTV:CAC Ratio

8.0:1

Healthy — sustainable growth

Projected Annual Revenue (Y3)

₹31,94,400

Today's power: ₹26,82,080

How to Use the LTV / CAC Calculator

  1. Enter average revenue per customer per month and gross margin percentage.
  2. Set average customer lifespan in months and monthly churn rate.
  3. Input total marketing spend and new customers acquired.
  4. Review LTV, CAC, ratio, and inflation-adjusted projections.

Examples & Reference

LTV = (ARPU × Gross Margin) / Churn Rate. CAC = Marketing Spend / New Customers. LTV:CAC Ratio = LTV / CAC. PV = FV / (1 + i)^n for inflation adjustment.

Frequently Asked Questions

A ratio of 3:1 or higher is generally considered healthy for SaaS businesses, meaning each customer generates 3× their acquisition cost.