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CAC & LTV Calculator

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

100% FreeRuns instantlyNo watermark
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  1. 1Enter detailsAdd the numbers for your scenario.
  2. 2CalculateVootkit updates the result instantly.
  3. 3ReviewCheck totals, notes and breakdowns.
Private by designProcessed on your device where possible.
Works on any deviceDesktop, tablet and mobile browsers.
No installationOpen the page and start working.
Always free coreUse the free plan for everyday tasks.

How to use CAC & LTV Calculator

Enter details

Add the numbers for your scenario.

01
Calculate

Vootkit updates the result instantly.

02
Review

Check totals, notes and breakdowns.

03
Use result

Copy the answer into your workflow.

04

Your files stay private

Your work is processed locally in your browser where possible and is never added to a Vootkit upload library.

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Two numbers decide whether a business can afford to grow: what a customer costs to acquire, and what they are worth once acquired. The ratio between them is the closest thing marketing has to a vital sign.

What CAC & LTV Calculator does

Divides total sales and marketing spend by customers acquired to get CAC, builds LTV from order value, frequency, lifespan and gross margin, and reports the ratio and payback period.

LTV is computed on gross margin, not revenue. A customer who spends £1,000 a year on goods that cost you £900 is not a £1,000 customer, and the version of this calculation that ignores margin has bankrupted a lot of companies.

How the numbers are read

CACAll sales and marketing spend ÷ new customers, not just ad spend
LTVOrder value × purchases a year × lifespan × gross margin
3:1The conventional healthy ratio
Below 1:1You lose money on every customer; growth accelerates the loss
Above 5:1Usually underinvesting in growth rather than excelling at it
PaybackUnder 12 months is comfortable for most subscription businesses

Detailed steps

  1. Enter all acquisition spend — ad budget plus salaries, tools, agencies and commissions.
  2. Enter customers acquired in the same period.
  3. Set order value, purchase frequency and expected lifespan.
  4. Use your real gross margin. This is where optimism does the most damage.

Worth knowing

Payback period matters more than the ratio when cash is tight. A 4:1 ratio with an eighteen-month payback will run you out of money faster than a 2.5:1 ratio that pays back in four, because you fund the acquisition today and collect the lifetime value slowly. Ratio tells you whether the business model works; payback tells you whether you can survive long enough to find out.

Frequently Asked Questions

What goes into CAC besides ad spend?

Everything spent to acquire customers: salaries for sales and marketing staff, agency retainers, software, content production, commissions and discounts given to close deals. Counting only media spend produces a flattering CAC that no investor will accept and that will not predict your actual cash burn.

Why does gross margin matter to LTV?

Because revenue is not money you keep. A customer generating £2,000 of revenue on 20% margins contributes £400 toward covering their acquisition cost. Building LTV on revenue rather than margin is the most common error in this calculation and it makes unprofitable acquisition look like a growth engine.

Is a very high ratio good?

Not necessarily. A ratio above 5:1 usually means you could profitably spend more on acquisition and are not, which is leaving growth on the table — the ratio is a constraint, not a score. It can also mean lifespan is being estimated generously, which is worth checking before celebrating.

How do I estimate customer lifespan?

From your own churn rate: average lifespan is roughly 1 divided by monthly churn, expressed in months. At 4% monthly churn that is about 25 months. Guessing a lifespan without a churn figure to back it up is how LTV becomes a number that justifies whatever spend was already planned.

Is CAC & LTV Calculator free?

Yes. The Vootkit free plan includes 5 tool runs a day. Upgrade to Vootkit Pro for unlimited daily use, an ad-free workspace and saved workflows.

Are my files uploaded?

No. CAC & LTV Calculator runs entirely in your browser — your file is processed on your own device and never sent to a server. There is nothing for us to store or delete.

Do I need to install anything?

No. CAC & LTV Calculator works in any modern browser on desktop, tablet or phone. Open the page and start.

How often can I use it? Is there a daily limit?

On the free plan you get 5 tool runs a day. When you reach the limit you'll see a prompt to upgrade, and it resets the next day. Vootkit Pro removes the cap entirely for unlimited daily use.

This tool processes everything locally in your browser. You can disconnect from the internet after the page loads and it will still work.