Average order value, CAC and LTV calculator
Calculate average order value, customer acquisition cost (CAC), customer lifetime value (LTV), LTV/CAC ratio and marketing payback.
How to useAverage order value, CAC and LTV
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Average order value, CAC and LTV calculator: what it is for
Enter revenue and number of sales to get the average order value. With the marketing spend and the number of new customers, the calculator shows the CAC. With purchase frequency, customer lifespan and margin, it estimates the LTV, the LTV/CAC ratio and how many purchases it takes to pay back the acquisition cost.
How to use
- Enter revenue and sales.
- Enter marketing spend and new customers.
- See average order value, CAC, LTV and payback.
When to use it
- Evaluate ad campaigns.
- Decide how much to invest to win customers.
- Track metrics for an online store or SaaS.
Frequently asked questions
What is a good LTV/CAC ratio?
The most common benchmark is 3 to 1: each customer should generate at least three times what it cost to win them. Below 1, the business loses money on every new customer. Well above 5 may mean you can invest more in marketing.
How do I calculate LTV?
LTV = average order value × purchases per year × years the customer stays × profit margin. It is how much profit a customer generates, on average, over the whole relationship.
Is it really free?
Yes, 100% free. No sign-up, no subscription and no usage limits. All Tools123 are free.