Free finance template
LTV and CAC
What a customer or member is worth, what one costs to win, LTV ÷ CAC and the payback months.
It opens with this template loaded and runs in your browser. You don't need an account to use it; a free account saves your work and exports it.
The job it does
When you judge a marketing channel, a subscription or a loyalty scheme. It comes with its own checks, so after you change it you can see at a glance that it still does the job.
What's inside
This is the template exactly as the Finance Lab opens it, read-only. Open it to run it, change it and export it.
- 1 sheet
- 6 formulas
- Exports to Excel, CSV and PDF
Lifetime is 1 ÷ monthly churn: at 6% churn a member stays about 16.7 months. LTV ÷ CAC above 3 is a common rule of thumb for healthy growth; payback under 12 months keeps cash safe.
- No formula errors anywhere
- B12 is a formula, not a typed number
- B14 is a formula, not a typed number
- B15 is a formula, not a typed number
| Number | Value |
|---|---|
| LTV | $115.67 |
| LTV / CAC | 7.71 |
| Payback (months) | 2.16 |
- Monthly churn: 6% (from 0.01 to 0.2)
- Monthly fee: $3.99 (from 0 to 9.99)
- Marketing spend: $36,000 (from 5000 to 120000)
| Row | A | B |
|---|---|---|
| 1 | Mangrove Plus membership: LTV and CAC | |
| 2 | Monthly fee | $3.99 |
| 3 | Extra orders per member per month | 1.5 |
| 4 | Contribution per extra order | $4.10 |
| 5 | Free-delivery cost per member per month | $3.20 |
| 6 | Monthly churn | 6% |
| 7 | Marketing spend | $36,000 |
| 8 | New members from it | 2,400 |
| 10 | Monthly value per member | $6.94 (formula =B2+B3*B4-B5) |
| 11 | Lifetime (months) | 16.67 (formula =1/B6) |
| 12 | LTV | $115.67 (formula =B10*B11) |
| 13 | CAC | $15.00 (formula =B7/B8) |
| 14 | LTV / CAC | 7.71 (formula =B12/B13) |
| 15 | CAC payback (months) | 2.16 (formula =IF(B10<=0,"never",B13/B10)) |
The lesson behind it
Learn why it works, with a podcast and a quiz for each lesson.
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