What is LTV:CAC Health Check Calculator?
The LTV:CAC Health Check Calculator is a free marketing tool that computes your Customer Lifetime Value (LTV), Customer Acquisition Cost (CAC), and the resulting LTV:CAC ratio. It then delivers an instant health score—ranging from critical to excellent—alongside actionable recommendations to improve your unit economics. The tool is built around the widely cited 3:1 benchmark for a healthy business, meaning you generate £3 of lifetime value for every £1 spent acquiring a customer.
Who it's for
- SaaS founders who need to validate subscription unit economics before raising or scaling spend.
- E-commerce marketers looking to understand whether their ad spend is actually profitable per customer over time.
- Subscription business operators who want a churn-based LTV calculation that reflects real customer lifespan rather than guesswork.
Key features
Simple LTV calculator
Enter average order value, purchase frequency, and customer lifespan to get a baseline LTV in seconds. This is the fastest way to see where you stand without complex spreadsheets.
Churn-based calculation for subscriptions
If you run a subscription business, input your monthly churn rate and the tool automatically derives customer lifespan (1 Ă· churn). This makes the LTV figure far more realistic for recurring revenue models.
Margin-adjusted and DCF-adjusted LTV options
Beyond the simple formula, you can apply gross margin to see true profitability per customer. For a more conservative view, add a discount rate (WACC) to calculate DCF-adjusted LTV—useful for businesses with longer payback periods.
Scenario modeling tool
Adjust levers like "improve LTV by X%" or "reduce CAC by Y%" to see how your ratio shifts. This helps you prioritise whether to focus on retention, pricing, or acquisition efficiency.
What stands out
Calculate your Customer Lifetime Value, Customer Acquisition Cost and LTV:CAC ratio, then get an instant health score with actionable recommendations to improve your unit economics.
Most LTV calculators stop at the number. This one goes further by benchmarking your ratio against a clear health gauge—critical, at risk, acceptable, healthy, excellent—and pairing it with a CAC payback period target. The visual gauge from 0× to 5×+ makes it immediately obvious whether you're in the danger zone or the sweet spot. The built-in scenario modeling is the real differentiator: instead of just diagnosing a problem, you can test fixes before committing budget.
Worth checking out if…
You're spending money on customer acquisition and want a free, no-sign-up way to sanity-check your unit economics. It's especially valuable if you're preparing for fundraising, planning ad budget increases, or trying to figure out whether your churn rate is quietly killing your LTV. The tool is practical for a quick health check, but also deep enough for a more rigorous margin-adjusted or DCF-adjusted analysis when you need it.
