Tools

LTV & max CAC calculator

Know what a customer is worth over their lifetime (LTV), and you know the most you can spend to acquire one (CAC) while keeping a safe margin.

What is one customer worth?

Customer lifetime value (LTV) sets the most you can spend to acquire one customer (CAC) and still make a profit.

Average order value (AOV)

Purchases / year

Years as a customer

Gross margin

2.1M ₫

LTV (revenue)

LTV (profit)840,000 ₫

Maximum CAC to spend (≈1/3 LTV)280,000 ₫

Target LTV : CAC ratio≥ 3 : 1

Spend up to 280,000 ₫ to win one customer and you still keep a safe margin. A CRM increases repeat purchases and pushes LTV up.

View the CRM module →

Indicative figures based on the numbers you enter.

How to use it

Drag the four sliders to your store's real numbers: average order value, purchases per year, years a customer stays, and gross margin.
Revenue LTV, profit LTV, and the maximum CAC you should spend update instantly. There is no calculate button to press.
Industry rule of thumb: a healthy LTV : CAC ratio is 3 : 1 or higher, so CAC should sit at about 1/3 of profit LTV.

The model assumes retention stays flat across the years and does not discount cash flows over time. Results are indicative and based on the numbers you enter.