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Break-even CAC & LTV:CAC Calculator

Calculate contribution LTV, break-even CAC and payback in months using your customer economics. A 3:1 LTV:CAC ratio is a planning heuristic, not a law.

01 / YOUR WORKSPACEKnow more. Do more.

Balance lifetime contribution and acquisition cost

Currency labels your inputs and results. Changing it does not convert entered amounts. Benchmarks keep their native currency and geography. Add current rates only if you need a cross-currency comparison.

ADVORA / THE DETAILS

Exchange rates

Enter your own current rates when comparing amounts in different currencies. No live rates are fetched.

Each value is the amount equal to US$1. Used for benchmark comparisons and approximate currency context only.

Valid rates save when you leave a field. Blank or invalid rates disable cross-currency comparisons. Your same-currency calculations still work.

Needed for payback even when entering LTV directly. Use contribution, not revenue.

02 / THE EXPLAINER

The method behind the result.

What does LTV:CAC measure?

This calculator divides lifetime contribution by customer acquisition cost. A 3:1 ratio is a common planning heuristic, not a universal target. Below 1:1, modeled lifetime contribution fails to recover acquisition cost.

How is payback calculated?

CAC divided by monthly contribution gives months to recover acquisition cost under a steady-contribution assumption. Use contribution after variable costs, not monthly revenue. Zero contribution means no modeled payback. If lifetime contribution is below CAC, payback is not recovered within the modeled customer lifetime, even if a theoretical steady monthly run-rate calculation produces a number.

Can I enter LTV directly?

Yes. Enter contribution-based LTV, and still supply monthly contribution for payback. The model does not discount future cash flows or independently estimate churn.

Worked example: contribution LTV and payback

With CAC of INR 3,000, monthly contribution of INR 500 and a 12-month customer lifetime, contribution LTV is 500 × 12 = INR 6,000. LTV:CAC is 6,000 / 3,000 = 2:1. Modeled payback is 3,000 / 500 = 6 months. Break-even CAC is INR 6,000 before fixed overhead. The example assumes steady contribution and does not discount future cash flows; a 2:1 ratio alone cannot establish whether growth is affordable.

03 / A LITTLE MORE CLARITY

Frequently asked questions

What to know before you put your result to work.

01Is 3:1 always the right ratio?

No. Cash flow, retention risk, payback time and growth goals affect the acceptable ratio.

02What is break-even CAC?

In this simplified model, break-even CAC equals lifetime contribution before acquisition cost and fixed overhead.

03What period should I enter?

Use months for both contribution and retention so payback is correctly reported in months.

SOURCES & METHODOLOGY

Where these numbers come from

Reviewed October 2026

Your numbers. Clear assumptions. Traceable sources.

Calculated from your inputs
Your amounts and assumptions drive the result. The guide above explains the formula.
Based on customer economics
This tool uses arithmetic and your assumptions. A 3:1 ratio is a planning heuristic, not a universal target.

Formula-based calculation

No external market average is used to calculate your result.

ADVORA / THE DETAILS

Sources & methodology

Transparent references. Practical context. No guaranteed outcomes.

Methodology reviewed October 2026 (source periods shown separately).

This tool uses your inputs and arithmetic, not an external market benchmark. The 3:1 ratio is a planning heuristic.

Benchmarks are directional references from third-party datasets, not guarantees. India ranges are agency-reported and indicative. Always validate against your own account data.

Explore more in Performance Marketing.

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