CAC & LTV Calculator
Can you afford to grow?
The two numbers that decide whether growth is worth funding. Most businesses know one of them and guess the other, which is how spend gets scaled into a loss.
Takes
1 min
Currency
01 — What acquisition costs you
Take a typical month.
02 — What a customer returns
LTV to CAC — underinvesting
5.3 : 1
A ratio this high usually means you are leaving growth on the table — you can afford to spend more to acquire, not less.
- Customer acquisition cost
- ₹11,500
- Lifetime value (gross profit)
- ₹60,000
- Net per customer
- ₹49,000
- CAC payback
- 7.5 months
- Average customer life
- 3.3 years
The working
- Total acquisition cost / month
- ₹4,50,000
- Gross profit per purchase
- ₹6,000
- Gross profit per year, per customer
- ₹18,000
- Customers / month
- 40
- Implied monthly gross profit
- ₹60K
Assumptions behind this+
- — LTV here is gross profit, not revenue. Revenue-based LTV flatters every business and is the most common way this number gets misused.
- — Average customer life is derived from churn as 1 ÷ 30%.
- — A 3:1 ratio is the usual healthy benchmark; under 1:1 the model loses money on every customer.
- — CAC payback under 12 months keeps cash flow manageable for most service businesses.
- — Discounting future cash flows would lower LTV slightly — this model does not discount, so treat it as the optimistic end.
How to read it
Figures are computed in INR and converted at indicative rates, August 2026. Good for comparison, not for invoicing.
- 01
LTV here is gross profit, not revenue. Revenue-based LTV flatters everyone.
- 02
3:1 is the healthy benchmark. Above 5:1 you are probably underinvesting, not winning.
- 03
CAC payback under 12 months is what keeps cash flow survivable.
If this is the problem, this is the work