Add your marketing and sales spend and new customers to instantly get your CAC, lifetime value, LTV:CAC ratio, and payback period in months — no email required.
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For LTV & payback
The formula: CAC = (Marketing + Sales Spend) ÷ New Customers. All figures are estimates for planning purposes.
8.4 : 1 — healthy. You may have room to invest more aggressively in growth. A ratio above 3:1 is healthy, while roughly 1:1 means you're breaking even.
LTV here is gross-margin lifetime value: revenue × lifespan × gross margin.
Payback period uses monthly gross-margin revenue per customer.
Include all fully-loaded marketing and sales costs for an accurate CAC.
CAC, LTV, and payback are the core of sustainable growth. Here's what each one means and how they fit together.
Customer acquisition cost is the total marketing and sales spend required to win one new customer over a period — the price tag of growth.
Roll in ad spend, salaries, commissions, agency and tool costs, and creative. A "fully-loaded" CAC is far more honest than ad spend alone.
Lifetime value is the gross-margin revenue a customer generates over their whole relationship: monthly revenue × lifespan × gross margin.
A healthy LTV:CAC ratio is around 3:1 — three dollars of value for every dollar spent acquiring. Below 1:1 you lose money; very high can mean underinvesting.
How many months a customer takes to repay their acquisition cost from gross-margin revenue. Shorter payback frees up cash to reinvest in growth.
Lift funnel conversion rates, lean into your best channels, build referral loops, sharpen targeting, and improve retention so efficiency compounds.
We help businesses across Canada cut acquisition costs and improve LTV:CAC with smarter paid media. No long-term contracts.