Free LTV:CAC Ratio Calculator

Quick answer

LTV:CAC compares modeled customer lifetime value with acquisition cost. It is a unit-economics diagnostic, not a universal growth target, because healthy ratios vary with payback period, margins, segment, and stage.

Formula

LTV:CAC ratio = customer lifetime value ÷ customer acquisition cost

Example

,500 LTV and $500 CAC equals a 3.0x LTV:CAC ratio.

How to interpret it

Calculate the ratio by channel and customer segment. A strong blended ratio can hide an inefficient acquisition source.

Methodology, assumptions and limitations