LTV:CAC ratio calculator
What a customer is really worth
Enter your order value, margin, repeat rate and what it costs to win a customer. You get lifetime value in profit, your LTV to CAC ratio and how long a new customer takes to pay back.
Enter your order value, margin, repeat rate and what it costs to win a customer. You get lifetime value in profit, your LTV to CAC ratio and how long a new customer takes to pay back.
How the calculator works
If 30% of customers order again, and each repeat customer has the same chance of ordering once more, an average customer places 1 divided by 0.70, about 1.4 orders. Lifetime value is that number times your order value times your margin, so it is profit, not revenue. Divide it by acquisition cost for the ratio. Payback counts the orders a customer has to place before their profit covers what you paid to win them, and turns it into months with the time between orders. It is a simple model. Cohort reports in Cifra show the real curve.
If 30% of customers order again, and each repeat customer has the same chance of ordering once more, an average customer places 1 divided by 0.70, about 1.4 orders. Lifetime value is that number times your order value times your margin, so it is profit, not revenue. Divide it by acquisition cost for the ratio. Payback counts the orders a customer has to place before their profit covers what you paid to win them, and turns it into months with the time between orders. It is a simple model. Cohort reports in Cifra show the real curve.
If 30% of customers order again, and each repeat customer has the same chance of ordering once more, an average customer places 1 divided by 0.70, about 1.4 orders. Lifetime value is that number times your order value times your margin, so it is profit, not revenue. Divide it by acquisition cost for the ratio. Payback counts the orders a customer has to place before their profit covers what you paid to win them, and turns it into months with the time between orders. It is a simple model. Cohort reports in Cifra show the real curve.