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CPL, CAC, LTV:CAC and Payback Calculator

Calculate cost per lead, customer acquisition cost, LTV:CAC ratio and months to payback. For B2B and SaaS marketing: an LTV:CAC below 3 points to a structural problem.

Your funnel

The four rules

  • LTV:CAC ≥ 3: each customer brings in three times what it cost to acquire them.
  • Payback < 12 months: you earn back the investment quickly and can reinvest.
  • Fully loaded CAC: include salaries, not just ads. Without them, your CAC looks artificially low.
  • CPL ≠ useful CAC: a low CPL with 1% conversion is worse than a high CPL with 15% conversion.

What to do if LTV:CAC is below 3

Three levers: raise LTV (better retention, upsells, higher average order), lower CAC (more efficient channels, better funnel conversion), or change your target customer (sometimes you’re acquiring segments that never become profitable). The fourth option, raising prices, is the fastest and the least used.

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