Hasebio

CAC & LTV Calculator

Find what it costs to win one customer (CAC), how much profit that customer brings over time (LTV), and how long they take to pay back their cost.

Your numbers

SAR

Total for one period, for example one month: ads, tools, salaries of the sales team.

Customers who bought for the first time.

SAR

Use your own data. If unsure, use a careful guess.

%

Share of sales left after product cost, shipping and fees.

Result

Fill all the boxes to see CAC and LTV.

Good to know

CAC = spend ÷ new customers. LTV = average order × orders per year × years × gross margin. Many businesses look for an LTV that is several times the CAC (3 times is a common rule of thumb, not a rule), but the right level depends on your business and cash.

About this calculator

Find what it costs to win a customer, what the customer is worth, and how fast you earn the cost back.

Example: SAR 10,000 spent to win 100 customers

CAC is 100 SAR. A customer who orders 3 times a year at 200 SAR for 2 years with a 40% margin brings 480 SAR, so LTV ÷ CAC is 4.8 and the CAC is earned back in 5 months.

Related calculators

Guides for this calculator

Frequently asked questions

What is CAC?

Customer acquisition cost: the sales and marketing spend in a period divided by the new customers you won in that period.

What is LTV?

Customer lifetime value: the gross profit a customer brings over the whole time they keep buying. Here it is average order × orders per year × years × gross margin.

What is a good LTV to CAC ratio?

Many businesses aim for an LTV that is about three times the CAC, but this is a rule of thumb, not a rule. A business with slow payback or little cash may need a higher ratio.

What counts as sales and marketing spend?

Ads, agency and influencer fees, marketing tools, discounts used to win the first order and the cost of the sales team, for the same period as the new customers.

How many years should I enter?

Use your own data on how long customers keep buying. If you are new, use a careful guess, such as one or two years, and update it as you learn.

What is the payback period?

It is how many months of a customer's gross profit it takes to earn back the CAC. A shorter payback frees your cash sooner.