LTV:CAC Ratio Calculator
Compare customer lifetime value with customer acquisition cost to measure your acquisition efficiency.
Business Metrics
Enter your customer lifetime value and customer acquisition cost.
The estimated gross profit generated by an average customer over their lifetime.
The average amount spent to acquire one new customer.
LTV:CAC Formula
LTV:CAC = Customer Lifetime Value ÷ Customer Acquisition Cost
LTV:CAC Results
See how much lifetime value you generate for every dollar spent acquiring a customer.
Enter your LTV and CAC
Your LTV:CAC ratio will appear here.
What is LTV:CAC?
The LTV:CAC ratio compares the value a customer generates over their lifetime with the cost of acquiring that customer. It is commonly used to evaluate customer acquisition economics.
For example, an LTV of $720 and CAC of $200 produces a 3.60:1 ratio. That means every $1 spent acquiring a customer corresponds to approximately $3.60 of lifetime value.
LTV:CAC Ratio Guide
< 1:1
Unhealthy
1:1 – 2:1
Needs Improvement
2:1 – 3:1
Reasonable
3:1 – 5:1
Healthy
These ranges are general guidelines rather than universal benchmarks. Healthy acquisition economics vary by industry, business model, margins, retention, and growth strategy.