B2B Growth Metrics
ROI Metrics
Calculator
Enter your numbers below to instantly calculate CAC, LTV, payback period, and how your ROI metrics compare to B2B benchmarks.
Your Inputs
Revenue
$
%
Sales & Marketing Spend
$
$
Pipeline
Derived Outputs
ACV
—
ARPA × 12
Customer Lifespan
—
1 ÷ Monthly Churn
LTV
—
Lifespan × ARPA
Actual CPL
—
Ad Spend ÷ Leads
Formula & Metric Reference — All 15 Metrics
Inputs
ARPAAverage Revenue Per Account (Monthly)
You enter thisTotal MRR ÷ total active accounts. Use monthly, not annual.
Monthly Account Churn% of customers who cancel monthly
You enter thisCustomers lost this month ÷ customers at start of month × 100. Annual churn ÷ 12 for an estimate.
Monthly S&M ExpensesTotal sales & marketing spend
You enter thisInclude: ad spend, sales salaries + commissions, marketing salaries, agency fees, tools (CRM, enrichment), content costs.
Monthly Ad SpendPaid media only
You enter thisSubset of S&M expenses. Used to calculate Actual CPL. Should be ≤ total S&M expenses.
New Leads / MonthPipeline volume
You enter thisDefine "lead" consistently — MQL, demo request, or trial signup. Used to calculate CPL and lead-to-customer conversion rate.
New Customers / MonthClosed / activated accounts
You enter thisAccounts that converted to paying this month. Used to calculate Actual CAC and lead-to-customer conversion rate.
Derived Outputs
ACVAverage Contract Value (Annual)
ARPA × 12Annualised revenue per account. Used as the basis for Target CAC Method 1. Higher ACV = higher allowable CAC.
Customer LifespanAverage months a customer stays
1 ÷ Monthly Churn %At 3.3% monthly churn: 1 ÷ 0.033 = ~30 months. Reducing churn from 3% to 2% extends lifespan from 33 to 50 months — a 52% LTV increase.
LTVCustomer Lifetime Value
Lifespan × ARPATotal revenue expected from one customer before they churn. The ceiling on how much you can rationally spend to acquire them.
Actual CPLCost Per Lead (paid only)
Ad Spend ÷ New LeadsWhat you're currently paying per lead from paid channels. Compare against Target CPL to know if your bids are set correctly.
Key Outputs
Target CAC — Method 150% of ACV
ACV × 0.5Rule of thumb: don't spend more than half your first-year contract value acquiring a customer. Conservative, contract-value-anchored ceiling.
Target CAC — Method 21/6th of LTV
LTV ÷ 6Targets a minimum 6:1 LTV:CAC ratio. Retention-anchored — accounts for full customer value over their lifetime, not just year one.
Target CAC (Midpoint)Average of Method 1 & 2
(Method 1 + Method 2) ÷ 2Balanced ceiling. Used as the primary CAC benchmark. If Actual CAC exceeds this, your S&M spend per customer is too high.
Actual CACTrue cost to acquire one customer
S&M Spend ÷ New CustomersBlended CAC across all channels. Include all S&M costs — not just ad spend. This is the number to benchmark against your Target CAC.
S&M Payback PeriodMonths to recover CAC
Actual CAC ÷ ARPAHow long before a customer generates enough revenue to cover their acquisition cost. Under 12 months = healthy. Over 18 months = capital intensive.
LTV : CAC RatioReturn on acquisition spend
LTV ÷ Actual CACThe core unit economics health metric. Below 3:1 = losing money on growth. 3–6:1 = acceptable. 6–8:1 = ideal. Above 8:1 = under-investing in growth.
Target CPLMax cost-per-lead at current conversion
Target CAC × (Customers ÷ Leads)The maximum you should bid or pay per lead given your current lead-to-customer conversion rate.
Lead-to-Customer RatePipeline conversion efficiency
New Customers ÷ New LeadsThe multiplier that connects CPL to CAC. A 10% improvement drops your effective CAC by 10% with zero change to ad spend.
LTV : CAC Ratio
—
Your return on every dollar spent acquiring a customer
036810+
S&M Payback Period
—
Months to recover what you spent acquiring each customer
Actual CAC
—
Total S&M spend ÷ new customers this month
Target CAC (Midpoint)
—
Average of 50% ACV and 1/6th LTV methods
Target CPL
—
Max you should pay per lead at your current conversion rate
vs B2B Benchmarks
LTV:CAC Ratio
6:1 – 8:1 ideal
—
Payback Period
<18 months
—
Actual CAC vs Target
CAC ≤ Target CAC
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How to Read This
—LTV:CAC below 3:1 = you're overpaying to acquire customers relative to what they're worth.
—LTV:CAC 6:1–8:1 = ideal range. Below 6 = not enough return. Above 8 = under-investing in growth.
—Target CPL helps you set bid caps in Google Ads, Meta, and LinkedIn so your paid channels stay within unit economics.
—Payback under 12 months = healthy. 12–18 months = acceptable. Over 18 months = capital-intensive — fix before scaling.