Free Tool

How much is one customer worth spending to acquire?

Calculate customer lifetime value (LTV) against customer acquisition cost (CAC) to see whether your business is growing profitably and the most you can pay to win a customer.

How do your customers buy?

Rough averages are fine

฿
times
Sales minus cost of goods/services, before marketing costs

Customer acquisition cost

Total monthly marketing spend, including ads, agency fees and influencers

฿
people

Most effective ways to grow LTV

See how much each method improves your LTV:CAC

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LTV : CAC ratio
-
: 1
    LTV (profit per customer)
    CAC (cost to acquire 1 customer)
    Acquisition cost paid back in
    Maximum affordable acquisition cost*
    Cumulative profit per customer (first 24 months)
    Month 11224

    * The highest acquisition cost that still keeps a 3:1 ratio, the benchmark most businesses use to leave enough profit to cover fixed costs.

    About this tool

    Sustainable growth means acquiring customers for less than the profit they generate

    What is it?

    A calculator comparing LTV (the profit one customer generates over the whole time they buy from you) with CAC (the cost of acquiring one new customer), showing whether your business grows profitably and the most you can pay to acquire a customer.

    Who it's for

    • Businesses with repeat customers, such as food, beauty, clinics and courses
    • Membership or monthly subscription businesses
    • Anyone wondering how much loss they can accept on the first order to win new customers

    How to use

    1. Choose how your customers buy
    2. Enter order value, purchases per year, gross margin and average customer lifetime
    3. Enter monthly marketing spend and new customers to calculate CAC
    4. Compare LTV with CAC and see the most effective ways to grow LTV

    What are LTV and CAC?

    Two numbers that tell you whether your business is growing sustainably or burning money

    LTV (Customer Lifetime Value)

    The total gross profit one customer generates for as long as they keep buying from you, calculated as order value × gross margin × purchases per year × years

    CAC (Customer Acquisition Cost)

    Total marketing spend divided by the number of new customers acquired. If you spend 50,000 THB on ads and get 100 new customers, CAC = 500 THB.

    What's a good LTV:CAC?

    Around 3:1 or higher is good. Below 1:1 means you lose money on every customer you acquire. Above 5:1 may mean you're under-investing in marketing and could scale further.

    Other free marketing tools

    Use them together to cover every part of your marketing plan