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Analytics & Event Tracking

LTV Calculator

Calculate customer lifetime value with multiple methods (simple, SaaS MRR-based), analyze LTV:CAC ratios, and get strategic recommendations.

Simple LTV Inputs

Average revenue per purchase
How many times customer buys per year
Average years customer stays active
Cost to acquire one customer

Gross Margin Calculation (Optional)

Gross Margin: 75%
Customer Lifetime Value
$3,600
LTV:CAC Ratio
3.60:1
Healthy
Payback Period
13.3
months to recover CAC
LTV
$3,600
CAC
$1,000
Monthly Margin
$75

Analysis & Insights

✓ Healthy LTV:CAC ratio of 3.6:1. This is the benchmark for sustainable growth.
You have room to invest more in customer acquisition while staying profitable.
Payback period of 13.33 months is acceptable but could be better.
Target: Get payback under 12 months for healthier cash flow.
Good 75% gross margin. Room to invest in growth.
Industry benchmarks:
• SaaS companies: 3:1 ratio minimum, 5:1 optimal
• E-commerce: 3:1 to 4:1 ratio typical
• Subscription boxes: 2:1 to 3:1 ratio common

Customer Segment Comparison

SegmentLTVCACRatioCustomersTotal Revenue
Enterprise$50,000$10,0005.0:150$2,500,000
SMB$5,000$1,0005.0:1500$2,500,000

Understanding LTV

LTV:CAC Ratio Benchmarks

  • • < 1:1: Losing money on every customer
  • • 1:1 to 3:1: Below benchmark, needs improvement
  • • 3:1: Minimum healthy ratio for sustainable growth
  • • 5:1+: Excellent, room to increase acquisition spend
  • • 10:1+: May be underinvesting in growth

Ways to Improve LTV

  • • Reduce churn with better onboarding
  • • Increase purchase frequency with engagement
  • • Add upsells and cross-sells
  • • Implement loyalty programs
  • • Focus on high-value customer segments
  • • Improve product to increase retention

Learn More in The Course

This tool is derived from Module 1 of "The Ultimate Growth Engineering Course." Learn the complete experimentation framework, how to design better tests, and interpret results like a pro.

Explore the Course