How to Calculate LTV:CAC Payback
What is LTV:CAC Payback?
LTV:CAC Payback Period Calculator helps you measure the effectiveness and profitability of your marketing investments.
Formula
Payback Months = CAC / (MRR per Customer × Gross Margin)
Step-by-Step Guide
- 1Divide CAC by monthly gross profit per customer
- 2Calculate the result using the formula
- 3Compare against benchmarks to evaluate performance
Worked Examples
Input
CAC $600, MRR $100, GM 75%
Result
Payback = 600/(100×0.75) = 8 months
Common Mistakes to Avoid
- ✕Not accounting for all costs in the calculation
- ✕Ignoring attribution window when measuring results
Ready to calculate? Try the free LTV:CAC Payback Calculator
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