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Customer lifetime value and CAC payback calculator
For subscriptions and memberships. See how long a customer stays, what they are worth, and how fast you earn back what you paid to win them.
Lifetime value here is monthly profit divided by monthly churn, which assumes churn stays steady. A common rule of thumb is to aim for a ratio of 3 or better. Small drops in churn add up fast, which is why saving cancellations pays.
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- Enter revenue per customer per month, gross margin and monthly churn.
- Add what it costs to acquire a customer.
- Read lifetime, LTV, LTV:CAC and payback months.
Common questions
What is a good LTV to CAC ratio?
Many subscription businesses aim for 3:1 or better, with CAC paid back within about a year. Your target depends on margin and cash flow.