CAC and LTV: The Growth Metrics That Work Together
Understand acquisition efficiency, customer value, and the ratio that supports sustainable growth.
Estimate the total revenue a customer will generate during their relationship with your business. LTV is essential for budgeting acquisition spend and forecasting long-term growth.
Enter your parameters and execute the calculation to see your customer lifetime value.
// ANNUAL REVENUE ALGORITHM
RevenuePerYear = AvgPurchaseValue × PurchaseFrequency
// LIFETIME VALUE VECTOR
LTV = AvgPurchaseValue × Frequency × Lifespan
"Customer Lifetime Value is the north star of sustainable growth. By projecting total revenue per customer, it quantifies the ceiling for acquisition spend and reveals the true return on retention investments."
Calculate the return on investment for any project, campaign, or business initiative.
Calculate Now →Determine how many units you need to sell to cover your total costs and start generating profit.
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