Know your numbers, grow your business
LTV & CAC Calculator: Maximize your studio’s growth
Want to understand how much your customers are worth and how much you're spending to acquire them? Use our LTV (lifetime value) & CAC (customer acquisition cost) calculator to gain insights, optimize profitability, and make smarter business decisions in just a few clicks.
What are LTV & CAC? Why do they matter?
LTV and CAC are two of the most important financial metrics for fitness studios, martial arts schools, and membership-based businesses. Understanding these numbers helps you scale efficiently, improve marketing ROI, and increase profitability.
What is customer lifetime value (LTV)?
LTV represents the total revenue a customer generates during their time with your business. It helps you determine how much you should invest in marketing, customer retention, and sales efforts to maximize long-term success.
LTV=(Monthly revenue per customer+Additional revenue)×Average customer lifespan (in months)
Example: If your average member pays $100 per month, stays for 12 months, and spends an extra $50 on merchandise, their LTV would be: (100+50)×12=1800
This means each customer is worth $1,800 over their lifetime.
What is customer acquisition cost (CAC)?
CAC represents how much you spend to attract a new customer. Keeping CAC lower than LTV ensures your business remains profitable.
CAC=Total sales & marketing spend\New customers acquired
Example: If you spend $5,000 on marketing and acquire 50 new customers, your CAC is: 5000\50=100
This means you spend $100 to acquire each customer. If your LTV is $1,800, you're in great shape! Ideally, you want your CAC to be 30% or lower compared to your LTV. This ensures your business is spending efficiently on marketing while maintaining strong profit margins.
LTV & CAC calculator FAQs
Have questions? Here are the most common ones:
What is a good LTV to CAC ratio?
A healthy LTV to CAC ratio is 3:1 or higher, meaning your customers generate three times the revenue compared to what you spend to acquire them. If your ratio is too low, you might be overspending on marketing or need to improve customer retention.
How can I increase my LTV?
To boost LTV, increase customer retention, upsell additional services, and offer premium memberships. Martial arts studios, for example, can offer gear packages, personal coaching, and workshops to increase revenue per student.
How can I lower my CAC?
Reducing CAC involves optimizing ad campaigns, leveraging word-of-mouth referrals, and improving lead conversion rates. A strong social media presence and organic SEO also help lower paid marketing costs.
How often should I analyze my LTV and CAC?
Tracking your LTV and CAC monthly or quarterly helps you identify trends, adjust marketing spend, and ensure long-term profitability.
Why is tracking these numbers important for my business?
Understanding LTV and CAC ensures that you're spending efficiently, growing sustainably, and maximizing profit margins. Without these insights, you could be losing money on customer acquisition.
Take the guesswork out of growing your business
If you’re still using spreadsheets or juggling multiple tools to track customer data, you’re making it harder than it needs to be. MyStudio gives you a real-time, automated view of your customer lifetime value (LTV), acquisition costs (CAC), and overall business performance—all in one place.
- Know exactly what each customer is worth. MyStudio calculates LTV for you, so you can make smarter marketing and retention decisions.
- Track customer behavior with real data. See how long members stay, when they drop off, and what keeps them engaged.
- Automate the busy work. Let MyStudio handle billing, marketing, and retention while you focus on growth.
- Turn insights into action. With organized, easy-to-read data, you can lower CAC, increase retention, and boost revenue—without the guesswork.
- See everything in one place. No more jumping between reports. Get a complete picture of your studio’s performance at a glance.
Stop spending time on manual calculations and scattered data. MyStudio gives you everything you need to optimize your business effortlessly.
Try MyStudio free or book a demo today
See how easy it is to streamline your business, reduce churn, and grow your revenue—without the hassle.
Thousands of businesses trust MyStudio.
