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LTV:CAC ratio and payback calculator

Enter lifetime gross profit per patient, acquisition cost and monthly gross profit to get the LTV:CAC ratio and how many months it takes to earn back CAC.

From the lifetime value calculator.

My numbers

Save your own numbers once and reuse them in every calculator. They stay in this browser; nothing is sent to us.

Which numbers are saved?
  • First-order revenue per patient (AOV): not saved
  • Medication / product cost per order (COGS): not saved
  • Clinician consult cost per patient: not saved
  • Pharmacy dispensing / fulfillment fee: not saved
  • Shipping per order: not saved
  • Payment processing: not saved
  • Refund + chargeback rate: not saved
  • Monthly churn: not saved
  • Patient acquisition cost (CAC): not saved
  • Monthly ad spend: not saved

LTV:CAC and payback

Enter your numbers to see the result.

Free tool by Telehealth Media · telehealthmedia.com

How it works

The LTV:CAC ratio compares what a patient is worth over their lifetime with what it cost to win them.

  • LTV:CAC = lifetime gross profit per patient / CAC
  • Payback months = CAC / gross profit per patient per month

Use gross profit, not revenue, for lifetime value. Revenue includes the cost of medication, consults and shipping, which makes the ratio look better than it is.

The payback figure here ignores churn: it is how long a patient who stays would take to cover their CAC. The CAC payback calculator adds churn, and shows when a patient never pays back.

We do not label a ratio good or bad. The right ratio depends on your cash position, how fast you need payback and how sure you are of your lifetime value estimate.

Worked example

Lifetime gross profit is 519.17 USD, CAC is 151.22 USD and a patient brings 62.30 USD of gross profit a month.

Worked example
StepCalculationResult
LTV:CAC519.17 / 151.223.43 : 1
Payback151.22 / 62.302.4 months

These numbers illustrate the formula; enter your own.

Telehealth notes

  • Lifetime value estimates are least reliable for new treatments with little refill history. Treat a high ratio built on a few months of data with caution.
  • A patient who pays back in two months and churns in three still adds profit; one who pays back in eight months may not stay that long. Look at payback next to churn.
  • Raising CAC to grow faster lowers the ratio. Better creative is one of the few levers that can raise volume without raising CAC.

Questions

How do you calculate the LTV:CAC ratio?

Divide lifetime gross profit per patient by the cost to acquire one patient.

What is a good LTV:CAC ratio?

There is no universal answer. It depends on cash, payback time and how reliable your lifetime value estimate is. Use the ratio to compare channels and periods in your own business.

Should LTV use revenue or gross profit?

Gross profit. Revenue overstates what each patient contributes.

Are my numbers stored?

No. The calculation runs in your browser and nothing is sent to us.