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E-Commerce Finance

LTV:CAC Ratio & Payback Calculator

Calculate customer lifetime value, your LTV:CAC ratio, and CAC payback period to see whether your acquisition spend actually pays back, and how fast.

Your numbers

%

LTV is measured in gross profit, not revenue

Average purchase frequency per customer

yrs

Customer acquisition cost

LTV
€432
Lifetime gross profit
LTV : CAC
10.8:1
Healthy
CAC payback
3.3 mo
Months to recoup CAC
Each customer is worth €432 in gross profit and costs €40 to acquire, an LTV:CAC of 10.8:1. At or above the ~3:1 rule of thumb. You recoup acquisition cost in about 3.3 months; under ~12 is a common ecommerce target.

Numbers pointing somewhere you did not expect? That is often where an interim marketing lead earns their fee. I take on companies in exactly this spot.

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