Supreme Advisory
Talk to an Advisor
Unit Economics for UK SMEs

£ CAC × LTV Calculator

The two metrics every UK SME founder should know. Calculate Customer Acquisition Cost, Lifetime Value, and the LTV:CAC ratio that determines whether your business is scalable.

Your Numbers

Enter the figures from your most recent reporting period.

Period over which spend and acquisitions are measured.
£
All ad spend, sales salaries & commissions, agency fees, content costs.
£
ARPU - what an average customer pays you each month.
%
Revenue minus direct cost of delivery, as a percentage.
How long an average customer stays before churning.
%
Percentage of customers who refer at least one new customer.
Customer Acquisition Cost (CAC)
£500
= Total Marketing & Sales ÷ New Customers
Sector benchmark loading...
Lifetime Value (LTV)
£3,600
= ARPU × Gross Margin × Lifespan
Gross profit per customer over their lifetime.
LTV : CAC Ratio
7.2×
= LTV ÷ CAC
Excellent Healthy
Payback Period
3.3 months
= CAC ÷ (ARPU × Gross Margin)
Months to recover acquisition cost.
Effective CAC (with referrals)
£435
CAC adjusted for referred customers (free acquisition).
A 15% referral rate reduces your effective CAC.

LTV : CAC Health Gauge

Where your business sits on the unit-economics scale.

7.2×
LTV : CAC
Excellent
Payback Period 3.3 months
06mo12mo18mo24mo+

Sector Benchmark — Professional Services

Healthy LTV:CAC for professional services is typically 4–7×, with payback inside 6–12 months.

You're sitting at 7.2× — strong.

Recommendations

Auto-generated based on the numbers you've entered. Update inputs to see this change live.

Improve these metrics with Supreme Advisory

From credit-building and management accounts to lead generation and brand strategy — we help UK SMEs strengthen their unit economics, prepare for finance applications, and scale with confidence.

Email Supreme Advisory

Disclaimer: CAC and LTV are simplified metrics — many factors influence acquisition economics, including channel mix, payment terms, churn cohorts, and discounting. Sector benchmarks shown here are illustrative for typical UK SMEs and not a substitute for industry-specific analysis. For investor-grade unit economics analysis, engage a qualified financial analyst.