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Free marketing decision tool

LTV:CAC Decision Tool

Compare customer lifetime value with customer acquisition cost and understand whether the supplied customer economics support acquisition.

Choose your LTV mode

LTV mode

Use the CAC for the customer or cohort being analyzed.

Use observed or estimated lifetime value.

Required for Revenue LTV mode.

Optional: use your own target rather than a universal benchmark.

This changes interpretation, not the mathematics.

What should you check next?

  1. Is CAC calculated consistently?
  2. How long is CAC payback?
  3. Is LTV observed or predicted?
  4. How sensitive is LTV to retention assumptions?
  5. Does CAC change when acquisition scales?
  6. Do customer economics differ by channel?

Related Hypermacx resources

Learn about LTV:CACRead the CAC metricRead the CAC Payback metricCalculate CACCalculate CAC payback