Start with acquisition spend and new customers, then add order value, margin, purchase frequency and retention to connect CAC with customer lifetime value.
Enter spend and customers first. Add value, margin and retention to build the LTV view.
Order value, margin, frequency and retention add the lifetime-value and payback context.
Start with the result. Open the details only when you need them.
Enter your numbers and calculate to see the result.
MPPM will explain what the result means and what to check next.
Work backwards from the outcome you want.
MPPM Professional Services can help connect CAC, LTV, margin, channel economics, ROAS targets and budget allocation into a practical growth model.
Free gives you the standard answer. Pro helps you plan targets, compare scenarios, organise recurring work and create decision-ready outputs.
Compare current, conservative and growth cases before committing to a change.
Test the same assumptions across multiple scenarios and see how the result moves.
Turn the calculation into a clear next-step recommendation.
MPPM connects the result and supporting metrics into one practical decision summary.
Start from the outcome you want, not only the result you have.
Work backwards from a target to the performance, volume or budget required.
Move from calculator result to something you can actually share.
Create structured outputs for managers, clients and recurring reviews.
Reuse important assumptions across connected decisions.
Connect this result with the other calculators in the MPPM workflow.
See how the decision changes over time.
Keep previous calculations, revisit assumptions and compare performance without deleting old work.
The useful decision comes from comparing acquisition cost with customer gross profit, retention and payback-not CAC in isolation.
Combine the acquisition costs that belong to the period and divide by genuinely new customers.
Use order value, purchase frequency, retention and gross margin to estimate customer gross-profit value.
LTV:CAC and payback show whether acquisition economics have enough room to scale sustainably.
An LTV:CAC ratio of 3.0x means estimated customer lifetime gross profit is three times acquisition cost under the assumptions entered. It is not a guarantee of realized profit.
Use connected calculators when the next question depends on another part of the economics.
Include acquisition costs that reasonably belong to acquiring the new customers measured in the same period, such as paid media and optionally sales acquisition costs.
Gross-profit-based LTV is usually more useful for acquisition decisions because revenue alone ignores the direct cost of serving or fulfilling the customer.
There is no universal target. A higher ratio creates more room, but the right level depends on payback, cash flow, retention reliability, operating costs and growth strategy.
Because a longer customer lifetime increases the number of purchases and therefore the value attributed to one acquired customer.
Yes. CAC/LTV is designed to feed target acquisition cost and customer-value assumptions into ROAS, Revenue Target and Media Planning workflows.
