LTV & CAC Calculator

LTV & CAC Calculator – AppFillip

App Marketing Analytics

LTV & CAC
Calculator

Calculate your Customer Lifetime Value and Customer Acquisition Cost to understand unit economics, measure campaign efficiency, and make smarter budget decisions.

Lifetime Value (LTV) Inputs
$

Avg monthly spend per active user

mo

How long users stay active on average

70%
1%50%100%

Revenue kept after direct costs

%

% of users who leave each month

LTV Formula LTV = ARPU × Lifespan × Gross Margin %
Customer Acquisition Cost (CAC) Inputs
$

All paid acquisition costs combined

Paying users acquired this month

$

Extra cost per new user (optional)

mo

Months to recover acquisition cost

CAC Formula CAC = (Total Spend + Onboarding Cost × Customers) ÷ New Customers
Results & Unit Economics

Customer LTV

$37.80

Lifetime value per user

Customer CAC

$13.70

Cost to acquire one user

LTV : CAC Ratio

2.8x

Ideal target is 3x or above

Payback Period

4.1 mo

Months to recover CAC

Profit Per User

$24.10

LTV minus CAC

Monthly ROI

176%

Return on acquisition spend

LTV:CAC Health Score
0x1x (Break-even)3x (Good)5x+ (Excellent)
● Good

Your LTV:CAC ratio is approaching the 3x benchmark. Consider optimising onboarding to reduce churn and increase payback speed.

Ratio Formula LTV:CAC = LTV ÷ CAC  |  Payback = CAC ÷ (ARPU × Margin)
Cumulative Revenue Projection Per User (12 Months)
Month Cumulative Revenue Cumulative Profit Break-even Status Progress
LTV:CAC Industry Benchmarks

Excellent

5x +

Highly efficient acquisition. Strong retention and monetisation.

Good

3x – 5x

Sustainable unit economics. Scale with confidence.

Marginal

1x – 3x

Profitable but thin margins. Optimise before scaling.

Danger Zone

Below 1x

Losing money on each user. Pause paid spend immediately.

LTV & CAC Optimisation Tips

01

Reduce Churn First

A 5% reduction in monthly churn can increase LTV by 25–95%. Fix retention before scaling acquisition spend.

02

Target 3x LTV:CAC

Industry consensus is 3:1 minimum for sustainable growth. Below 3x means your acquisition is eating into profitability.

03

Shorten Payback Period

Aim for under 12 months payback. Faster payback means more cash to reinvest in growth and lower business risk.