Academy · LTV and CAC · Guide
Enter your own numbers: marketing and sales spend, new customers, revenue per customer, gross margin and churn. The calculator shows customer lifetime value (LTV), acquisition cost (CAC), their ratio and the payback period, with every formula in the open. It names no industry figures and no target value.
Your assumptions
Your own assumptions. No benchmark, no advice and no performance promise from Peak.
Your result
Your own assumptions. No benchmark, no advice and no performance promise from Peak.
01 / Calculated openly
CAC is marketing and sales spend divided by new customers in the same month. LTV is revenue per customer and month times gross margin, divided by monthly churn. Payback is CAC divided by monthly gross profit per customer. The formulas are simplifications. They assume revenue, margin and churn stay the same over the customer lifetime.
The calculation
Your entries stay visible. The result follows exactly this calculation, without AI and without a server.
Monthly gross profit divided by churn.
1 divided by churn.
Cost per new customer (CAC)
02 / Other perspectives
Worked examples to change. The values are made-up examples, not measured data.
Made-up assumption: few new clients a month, a high monthly fee, low churn.
Made-up assumption: many new customers with a small monthly fee and higher churn.
03 / Move on transparently
Download the calculation with all assumptions and check the inputs against real numbers from your accounting or from Peak Analytics.
Your own assumptions. No benchmark, no advice and no performance promise from Peak.
No. The calculator runs in your browser and only uses the numbers you enter. Peak Analytics is available as a preview and can give you some of the inputs from your own data.
Revenue per customer and month times gross margin, divided by monthly churn. It is a simplification with constant revenue, constant margin and even churn.
All marketing and sales spend of a month, divided by the new customers of the same month. Payback is CAC divided by monthly gross profit per customer.
This page deliberately names no industry figure. Below 1 a customer costs more than they bring; how much headroom you need above that depends on your cash flow and your business.
