LTV:CAC Ratio Calculator & Health Check

The LTV:CAC Ratio Calculator & Health Check is a free, browser-based tool from UK Creative Ventures that calculates Customer Lifetime Value (LTV), Customer Acquisition Cost (CAC), and the LTV:CAC ratio, then provides an instant health score with actionable recommendations. It includes three integrated tabs: a health check for quick ratio analysis, a detailed LTV calculator with simple, margin-adjusted, and DCF-adjusted outputs, and an improvement simulator to model the impact of LTV increases and CAC reductions. The tool is designed for SaaS, e-commerce, and subscription businesses and requires no sign-up.

What is the LTV:CAC Ratio Calculator?

The LTV:CAC Ratio Calculator is a free marketing tool that computes your customer lifetime value, acquisition cost, and their ratio, then benchmarks the result against the widely cited 3:1 healthy standard. You input revenue per customer, gross margin, and acquisition spend; it outputs the ratio, margin-adjusted LTV, CAC payback period, and a visual health gauge. It runs entirely in the browser and is provided by UK Creative Ventures, a Bristol-based marketing and recruitment agency.

Key Features

• Health check dashboard — Enter LTV and CAC to get your ratio, margin-adjusted LTV, CAC payback period, and a visual gauge from Critical to Excellent.
• LTV calculator with three methods — Compute simple LTV (AOV × frequency × lifespan), margin-adjusted LTV (using gross margin), and DCF-adjusted LTV (using a discount rate/WACC).
• Churn-based lifespan — Optionally input monthly churn rate to automatically calculate customer lifespan as 1 ÷ churn.
• Improvement simulator — Adjust sliders to increase LTV by up to 50% or reduce CAC by up to 50% and see the projected ratio change.
• Benchmark guidance — Includes a built-in explanation of LTV:CAC benchmarks (below 1:1 losing money, 1:1–3:1 profitable but underinvesting, 3:1–5:1 healthy).
• Free and no sign-up — All features are accessible immediately without registration.

Who is it for?

• SaaS founders — Calculate LTV:CAC to validate unit economics before fundraising or scaling ad spend.
• E-commerce marketers — Use the health check to assess whether customer acquisition costs are sustainable relative to repeat purchase value.
• Subscription business owners — Leverage the churn-based LTV calculation to understand how retention impacts lifetime value.
• Finance teams — Use the DCF-adjusted LTV output for a more conservative, time-value-aware view of customer profitability.

What can you do with it?

• Quick health assessment: Enter your current LTV and CAC to instantly see your ratio, payback period, and a health score with a recommendation.
• Detailed LTV modeling: Input average order value, purchase frequency, lifespan or churn rate, gross margin, and discount rate to get three LTV figures (simple, margin-adjusted, DCF-adjusted).
• Scenario planning: Use the improvement simulator to see how a 20% LTV increase or a 25% CAC reduction would move your ratio, helping you set growth targets.

How does it work?

The tool is organized into three tabs. In the LTV calculator tab, you enter average order value, purchase frequency, customer lifespan (or monthly churn rate), gross margin, and optionally a discount rate; it calculates simple, margin-adjusted, and DCF-adjusted LTV. You then copy the LTV value into the health check tab along with your CAC, and the tool computes the ratio, payback period, and health score. The simulator tab lets you adjust LTV and CAC percentages to project the resulting ratio.

Pricing

Free — no sign-up required.