LTV:CAC Ratio Calculator
LTV:CAC Ratio Calculator
The LTV:CAC ratio compares how much a customer is worth over their lifetime against how much it costs to acquire them — enter both figures (each has its own dedicated calculator elsewhere on this site if you need to compute them first) to get the combined benchmark marketers actually use to judge unit economics.
- Formula: LTV:CAC Ratio = Customer Lifetime Value ÷ Customer Acquisition Cost.
- Commonly cited benchmark: a ratio of 3:1 to 5:1 is often considered healthy — below 1:1 means you're losing money on every customer, and above 5:1 may suggest you could profitably invest more in growth.
- Context matters: the "right" ratio varies by business model, growth stage, and how long it takes to recover the acquisition cost — a fast-growing startup may intentionally accept a lower ratio to capture market share.
What if I don't know my LTV or CAC yet?
Use the dedicated Customer Lifetime Value (CLV) Calculator and Customer Acquisition Cost (CAC) Calculator elsewhere on this site to compute each figure first, then enter both here.
Why is 3:1 considered a common benchmark?
It leaves enough margin above the break-even point (1:1) to cover other operating costs beyond acquisition and still turn a healthy profit per customer.
LTV:CAC Ratio Calculator
The LTV:CAC ratio compares how much a customer is worth over their lifetime against how much it costs to acquire them — enter both figures (each has its own dedicated calculator elsewhere on this site if you need to compute them first) to get the combined benchmark marketers actually use to judge unit economics.
- Formula: LTV:CAC Ratio = Customer Lifetime Value ÷ Customer Acquisition Cost.
- Commonly cited benchmark: a ratio of 3:1 to 5:1 is often considered healthy — below 1:1 means you're losing money on every customer, and above 5:1 may suggest you could profitably invest more in growth.
- Context matters: the "right" ratio varies by business model, growth stage, and how long it takes to recover the acquisition cost — a fast-growing startup may intentionally accept a lower ratio to capture market share.
What if I don't know my LTV or CAC yet?
Use the dedicated Customer Lifetime Value (CLV) Calculator and Customer Acquisition Cost (CAC) Calculator elsewhere on this site to compute each figure first, then enter both here.
Why is 3:1 considered a common benchmark?
It leaves enough margin above the break-even point (1:1) to cover other operating costs beyond acquisition and still turn a healthy profit per customer.