LTV Calculator
LTV quoted without gross margin is a vanity number. This one adjusts for margin and pairs the result against your acquisition cost, which is the only comparison that matters.
Your numbers
Result
Lifetime value
$980
- Average lifetime
- 25.0 mo
- LTV : CAC
- 4.5×
- CAC payback
- 5.6 mo
What this means
An LTV:CAC above 3 means acquisition pays for itself with room to reinvest. Consider spending harder.
Questions people ask
Why adjust LTV for gross margin?+
Because revenue is not cash you keep. Hosting, support and payment fees come out first — unadjusted LTV overstates what a customer is actually worth.
What is a healthy LTV:CAC ratio?+
3:1 is the usual benchmark. Much higher can mean you are underinvesting in growth; below 1:1 means you lose money on every customer you acquire.
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