LTV:CAC Report
Cohort lifetime-value model · Generated 18 October 2026
| Average order value | ₹1,450 |
|---|---|
| Contribution margin | 42.0% |
| Acquisition cost (CAC) | ₹520 |
| Repeat rate per cycle | 28.0% |
| Purchase cycle | 3 months |
| Horizon | 24 months |
LTV:CAC calculator
What is a customer really worth? First-order profit is the wrong question for a brand that intends to exist in three years. This one follows the customer, not the order.
Your numbers
Example numbers: replace with your ownNot sure of contribution margin? The break-even tool works it out from your cost sheet.
Per order
After COGS, shipping and fees.
Repeat behaviour
Of buyers in one cycle, how many buy in the next.
Each customer returns ₹846 of contribution over 24 months against a ₹520 acquisition cost. To reach 3:1 you'd need CAC at ₹282, or a better repeat rate.
Contribution catching up with CAC
Where the blue line crosses the flat one, the customer has paid for themselves.
Period-by-period table
| Period | Cumulative contribution | Cleared CAC? |
|---|---|---|
| First | ₹609 | Yes |
| M3 | ₹780 | Yes |
| M6 | ₹827 | Yes |
| M9 | ₹841 | Yes |
| M12 | ₹844 | Yes |
| M15 | ₹845 | Yes |
| M18 | ₹846 | Yes |
| M21 | ₹846 | Yes |
| M24 | ₹846 | Yes |
Three moves, and what each is worth
Lift repeat from 28% to 38%: the single cheapest lever most brands have.
Five points of contribution margin, from packaging, shipping or price.
The CAC that would put you at the 3:1 benchmark at today's LTV.
Estimates from your inputs, not a forecast.
LTV here is built on contribution, not revenue. Lifetime revenue flatters the number badly because it ignores COGS, shipping and fees. 3:1 is the usual benchmark. Below 2:1 growth burns cash; far above 4:1 often means you're underspending and leaving growth on the table.
Repeat rate does the heavy lifting
At 28% the average customer buys 1.39 times. Ten points more takes lifetime contribution from ₹846 to ₹982, and it needs no extra ad spend at all, which is why it beats chasing CAC down.
Questions this calculator answers
What is a good LTV:CAC ratio?
3:1 is the widely used benchmark, three rupees of lifetime contribution for every rupee of acquisition cost. Below 2:1 growth generally burns cash. Far above 4:1 often means you are underspending and leaving growth on the table.
Should LTV use revenue or contribution?
Contribution. Lifetime revenue flatters the number badly because it ignores COGS, shipping and fees. LTV built on contribution tells you what is actually available to pay for acquisition and overhead.
What is CAC payback and why does it matter?
CAC payback is the month cumulative contribution from a customer finally equals what you paid to acquire them. It governs how fast you can grow without external funding: a brand with three-month payback can recycle cash four times a year, while a twelve-month payback can only do it once.
How the LTV:CAC calculator works
LTV:CAC compares what a customer is worth with what it cost to win them. Monday Marketing Company builds lifetime value on contribution, not revenue, because revenue ignores product cost, shipping and fees and flatters the number.
The formula
LTV (contribution) = contribution per order × orders per customer over their lifetime LTV:CAC = LTV ÷ CAC CAC payback = the month cumulative contribution from a customer reaches CAC
Worked example
Illustrative numbers, not a benchmark.
| Contribution per order | ₹500 |
|---|---|
| Orders per customer, on average | 1.8 |
| LTV (contribution) | ₹900 |
| CAC | ₹300 |
| LTV:CAC | 3.0 : 1 |
A 3:1 ratio is the commonly used benchmark: three rupees of lifetime contribution for every rupee spent winning the customer. With the same LTV and a CAC of ₹600, the ratio falls to 1.5:1 and the first order leaves the brand ₹100 short, so the customer pays back only if they order again.
How to read the result
Read the ratio and the payback together. A healthy ratio with a long payback still ties up cash, and a short payback with a thin ratio leaves little to scale on. If the ratio is low, the levers are higher contribution per order, a better repeat rate or a lower CAC. Use contribution for LTV so that the number reflects what is left to pay for acquisition and overhead.
Below about 2:1, growth generally burns cash. Far above 4:1 often means the brand is underspending and leaving growth on the table.
Payback matters as much as the ratio. A three-month payback lets a brand recycle cash four times a year; a twelve-month payback only once.
Read the guide: contribution margin, the base for LTV CAC runway calculator D2C marketing glossary
Next step
Raise what each customer is worth to you.
On a call, with a senior strategist. We read your repeat-purchase data and show what to change in the first 30 days.
