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LTV:CAC Ratio Calculator

Compare customer lifetime value against customer acquisition cost.

Use a profit-based figure from the LTV Calculator for the most meaningful comparison.
Use the CAC Calculator if needed.

Formula

LTV:CAC Ratio = Customer Lifetime Value ÷ Customer Acquisition Cost

There's no single universal "good" ratio — what's sustainable depends on your margins, how quickly you recover acquisition cost, and how much capital you have to fund growth in the meantime. Treat any specific benchmark you read elsewhere as a rule of thumb, not a rule.

Worked Example

A customer with a $240 profit-based LTV and a $80 CAC gives a ratio of $240 ÷ $80 = 3:1 — lifetime value is three times acquisition cost.

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CAC Calculator

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