Is your LTV : CAC healthy?
The one ratio that decides whether you can spend to grow. Plug in four numbers — get your lifetime value, ratio, and payback period.
Slap Post is how indie founders compound on X without a marketing budget — Chad tells you what to post next, Slap Magic queues it into your best slots, and it fires hands-free.
What is the LTV CAC calculator?
The LTV CAC calculator is a free customer lifetime value calculator that gives you the one number every founder should know: your LTV to CAC ratio. Enter your ARPU, gross margin, monthly churn and customer acquisition cost, and it instantly returns your customer lifetime value (LTV), your LTV:CAC ratio, and your CAC payback period. It's the fastest way to check whether your unit economics are healthy enough to spend money on growth.
How to use it
- Enter your ARPU — the average monthly revenue per customer — and your gross margin percentage.
- Add your monthly churn rate and your CAC (the cost to acquire one customer).
- Tap Calculate to get your customer lifetime value, your LTV to CAC ratio, and your payback period in months.
Frequently asked questions
What is a good LTV to CAC ratio?
A 3:1 LTV to CAC ratio is the classic healthy benchmark — you earn three dollars of lifetime value for every dollar spent acquiring a customer. Below 1:1 you lose money on each customer; between 1:1 and 3:1 you make money but have little room to scale acquisition.
How is customer lifetime value calculated?
This calculator computes LTV as gross profit per month divided by your monthly churn rate. Gross profit per month is ARPU multiplied by gross margin, and dividing by churn estimates how long the average customer stays and pays.
What is CAC payback period?
CAC payback is how many months it takes for one customer's gross profit to repay the cost of acquiring them. It is your CAC divided by gross profit per month. Shorter payback means you recover cash faster and can reinvest in growth sooner.
Is this LTV CAC calculator free?
Yes. The LTV CAC calculator is completely free, runs in your browser, needs no login or sign-up, and gives you your LTV, LTV:CAC ratio and payback period instantly.
More free tools for X creators: Ramen Profit Calculator · Pricing Calculator · all 30 free tools. Or try Slap Post to schedule and post your content automatically.