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Free CAC & LTV Calculator - Customer Acquisition Cost and Lifetime Value

Customer Acquisition Cost (CAC) and Lifetime Value (LTV) measure how efficiently you acquire and retain customers. Use this free calculator to compute CAC, LTV, the LTV/CAC ratio, and CAC payback period.

Formulas

  • CAC = Total Sales & Marketing Spend / New Customers Acquired
  • LTV = ARPA × Gross Margin / Churn Rate
  • LTV/CAC Ratio = LTV / CAC
  • CAC Payback = CAC / (ARPA × Gross Margin)

SaaS Benchmarks

A healthy LTV/CAC ratio is 3.0 or higher, and CAC payback under 12 months is considered strong for B2B SaaS. Below 1.0 LTV/CAC indicates unprofitable acquisition.

DealARR calculates LTV, CAC, and payback automatically from your deal book and S&M spend, segmented by channel, segment, and cohort.