LTV:CAC Ratio Calculator
Enter your Customer Lifetime Value and Customer Acquisition Cost to instantly calculate your LTV:CAC ratio — the defining metric of sustainable growth economics.
How to Use This Calculator
The LTV:CAC ratio is one of the most important metrics in growth — it tells you whether your business model is economically sound at the unit level.
Enter your customer lifetime value
LTV is the total net revenue from one customer over their lifetime. Calculate it as average revenue per customer multiplied by average customer lifespan, adjusted for gross margin.
Enter your customer acquisition cost
CAC is your total marketing and sales spend divided by the number of new customers acquired in the same period. Include all costs: ads, agency, tools, and sales team.
Read your LTV:CAC ratio
A ratio of 3:1 means each customer generates 3× what it cost to acquire them. This is the minimum benchmark most investors and growth advisors look for.
Interpret the benchmarks
Below 1:1 means you are losing money on every customer. 1–3:1 is the break-even zone. 3:1 is healthy for most businesses. Above 5:1 is exceptional and signals room to increase acquisition spend.
Want to improve your LTV:CAC ratio?
We help growth-stage businesses improve unit economics by reducing CAC through organic acquisition and increasing LTV through better retention and expansion strategies.
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