LTV:CAC & payback calculator
The single most important unit-economics check for a subscription health brand - lifetime value, LTV:CAC ratio, and how many months until a customer pays you back.
Runs in your browser; nothing is stored. LTV here is gross-profit LTV (revenue × margin × months). The 3:1 benchmark and vertical context come from our 2026 health-vertical benchmarks.
How to calculate LTV:CAC
Three inputs decide whether your model scales: what a customer is worth, what they cost, and how fast they pay you back.
- Estimate lifetime value. LTV ≈ monthly revenue × gross margin × average months retained.
- Divide LTV by CAC. The ratio is lifetime value ÷ acquisition cost - aim for at least 3:1.
- Calculate payback. Payback (months) = CAC ÷ monthly gross profit per customer.
What the numbers mean
A ratio at or above 3:1 is the benchmark for a scalable model, and payback under 12 months keeps growth cash-efficient. In subscription health, the biggest lever isn’t CAC - it’s retention: adding a few months to average lifespan moves LTV more than most CAC cuts. For the full definition and where the 3:1 rule comes from, see LTV:CAC ratio in the glossary, and benchmarks by vertical for context.
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