LTV:CAC Calculator

LTV:CAC Calculator MCP Connector for Claude

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Determine if your customer acquisition strategy is profitable by calculating LTV, CAC, and the critical LTV:CAC ratio.

3 tools Official Updated Jun 28, 2026 Official Vinkius Partner

Assess Unit Economics with Precision

The challenge for any growing business is knowing if spending money to acquire a customer actually generates profit. Many companies struggle to connect their marketing spend (CAC) directly to the long-term value of that customer (LTV). This gap in understanding leads to inefficient spending and unsustainable growth projections.

Our MCP provides a clear mechanism to bridge this financial intelligence gap. It guides users through three core calculations:

  1. Projecting Lifetime Value: Using calculate_ltv, you input the Average Revenue Per User (ARPU), gross margin, and churn rate to forecast the total value of a customer over time.
  2. Pinpointing Acquisition Cost: With calculate_cac, you provide detailed spend data across different channels. The tool computes the precise cost required to acquire one paying user from each source.
  3. Evaluating Profitability: Finally, evaluate_profitability synthesizes these two metrics with your gross margin and time period to deliver the LTV:CAC ratio, a payback period in months, and a clear verdict (Optimal, Warning, or Critical).

The result is not just a number; it's an actionable measure of financial health. You can immediately determine if your marketing spend supports sustainable growth.

ltvcacprofitabilityunit-economicsgrowth-metrics

3 tools expose this connector's capabilities to your AI agent.

calculate_cac

Accepts JSON array of {channelName, totalSpend, newCustomersAcquired} objects. Calculate Customer Acquisition Cost (CAC) per marketing channel

calculate_ltv

LTV = ARPU × (1 / churnRate) × grossMarginPercentage. Calculate Customer Lifetime Value (LTV) based on ARPU, gross margin, and churn rate

evaluate_profitability

Evaluate LTV:CAC ratio, payback period, and profitability verdict

See how to talk to your AI agent using LTV:CAC Calculator.

My ARPU is $1200, gross margin is 0.65 (65%), and my annual churn rate is 0.08 (8%). Please calculate the LTV.

I will first run `calculate_ltv` with ARPU=1200, grossMarginPercentage=0.65, and churnRateAnnualPct=0.08. The projected LTV is $10,533.33.

Calculate CAC for these two channels: Paid Search ($20k spend, 40 customers) and Organic Content ($5k spend, 100 customers).

Using `calculate_cac`, the resulting CAC is $0.50 for Paid Search ($20k/40) and $0.05 for Organic Content ($5k/100). Total CAC is $10,500.

Given an LTV of $10,533.33 and a total CAC of $10,500, with a gross margin of 0.65 over 12 months, what is the profitability verdict?

I will run `evaluate_profitability` using LTV=$10533.33, totalCacAmount=$10500, grossMarginPercentage=0.65, and timePeriodMonths=12. The result shows an Optimal verdict (ratio > 5:1).

The LTV:CAC ratio is paramount. You can use `evaluate_profitability` by feeding it the results from `calculate_ltv` and `calculate_cac`. A healthy ratio (5:1 or higher) confirms that your acquisition spending generates sufficient long-term revenue.

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