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LTV/CAC and payback calculator

LTV/CAC + payback calculator for SaaS founders

Get a clean LTV/CAC snapshot from ARPA, gross margin, churn, and CAC. Use it to validate pricing, acquisition spend, and your growth targets.

LTV clarity

See margin-adjusted LTV and customer lifetime in months.

LTV/CAC ratio

Understand whether acquisition spend is sustainable for growth.

Payback months

Estimate how quickly you recover CAC from gross margin.

Enter your metrics

Use monthly numbers for ARPA and churn. Gross margin is a percentage.

Founder tip

Use realistic churn numbers. Even small changes in churn can swing LTV dramatically.

Your LTV/CAC snapshot

Results update instantly. Share this scenario with your team.

Lifetime value (LTV)

$32,000

Based on 80.0% margin and 3.0% churn.

LTV/CAC ratio

5.33x

CAC payback

6.3 months

Estimated customer lifetime

33.3 months

Share this model

Links include your inputs so your team sees the same scenario.

1. Gross margin revenue

ARPA x gross margin = $960 per month.

2. LTV

LTV = margin-adjusted ARPA / churn rate.

3. Payback

Payback = CAC / margin-adjusted ARPA.

This calculator provides directional guidance for founder planning. Validate pricing and retention with your full model.

How to interpret the results

A higher LTV/CAC ratio means you can scale acquisition confidently. Shorter payback periods free up cash for faster growth or reinvestment.

Rule of thumb

Many SaaS teams aim for 3.0x LTV/CAC and under 12 months payback.

Implied CAC for 3.0x LTV: $10,667

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FAQs

How do you calculate LTV?

We use gross margin-adjusted LTV: (ARPA x gross margin) / monthly churn rate.

How is CAC payback calculated?

Payback months = CAC / (ARPA x gross margin). This shows how long it takes to recover acquisition cost.

What is a healthy LTV/CAC ratio?

Many SaaS businesses target 3.0x or higher, but it varies by market, growth stage, and expansion revenue.

Is my data stored?

No. All calculations run locally in your browser and nothing is stored on the server.