LTV:CAC Ratio Calculator

Calculate the ratio between your Customer Lifetime Value (LTV) and Customer Acquisition Cost (CAC) to determine the efficiency and sustainability of your business model.

Calculate Your LTV:CAC Ratio

Customer Lifetime Value (LTV) ($)

Customer Acquisition Cost (CAC) ($)

Pro Tips for Managing Your LTV:CAC Ratio

Track this ratio over time to ensure your business stays within the healthy range.
Calculate the ratio by customer segment to identify your most profitable customer groups.
Consider CAC payback period alongside LTV:CAC ratio for a more complete picture.
Reinvest in customer retention when LTV:CAC falls to boost customer lifetime value.
Increase marketing spend when LTV:CAC is very high to capture more market share.