# CAC LTV Calculator: Customer Value | RevenueWorks > Free CAC and LTV calculator: cost per new customer, customer value, LTV-to-CAC ratio and payback period. Source: https://revenueworks.ai/tools/cac-ltv-rechner Language: en --- Free tool # CAC LTV calculator: what is a customer worth? Enter ad cost, new customers and contribution margin. You see CAC, LTV, the ratio and the payback period. **In short:** CAC = advertising and sales cost ÷ new customers. LTV = contribution margin × orders per year × years. From about 3 : 1 (LTV to CAC) the ratio is often seen as healthy, which is a rule of thumb. ## Your inputs Advertising and sales cost per month (€) New customers per month Contribution margin per order (€) What remains after cost of goods, shipping, fees and returns. Orders per customer per year Customer lifetime (years) ## Your result CAC €50.00 Cost per new customer LTV €120.00 Contribution margin over the lifetime LTV to CAC 2.4 : 1 From about 3 : 1 it is often seen as healthy. That is a rule of thumb, not a law. CAC payback10.0 months Nothing is saved or sent. ## Request a written review Embed this calculator on your website Free, no sign-up. Please keep the source link. The calculator runs in our frame, no inputs are passed on to you. ## Knowing what a customer is worth is the first step. Next, calculate your break-even ROAS so you know how much advertising pays off. [To the ROAS calculator](https://revenueworks.ai/tools/roas-rechner) [Write on WhatsApp](https://wa.me/35679286342?text=Hi%20David!%20I%20used%20the%20CAC%20LTV%20calculator%20and%20want%20to%20win%20new%20customers%20profitably%3A%20) ## How to calculate CAC and LTV: formulas and example CAC shows what a new customer costs, LTV what they bring in. Together they decide how much you can spend on advertising. ### Formulas CAC = advertising and sales cost ÷ new customers. LTV = contribution margin per order × orders per year × years. Payback in months = CAC ÷ (contribution margin × orders per year ÷ 12). ### Example €5,000 cost, 100 new customers: CAC €50. Contribution margin €20, 3 orders a year, 2 years: LTV €120. The ratio is 2.4 : 1, the CAC pays back after 10 months. The calculator runs entirely in your browser. Your inputs are not saved and not sent anywhere. All figures without guarantee. ## Frequently asked questions What is CAC? CAC (customer acquisition cost) is all the cost you spend to win a new customer, divided by the number of new customers. What is LTV? LTV (lifetime value) is the contribution margin a customer brings over the whole relationship. What is a good LTV to CAC ratio? A 3 : 1 ratio is often cited as a guide. 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