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LTV to CAC Ratio Calculator

LTV:CAC compares estimated customer lifetime value with acquisition cost. It gives a ratio for customer economics but depends heavily on retention, margin and attribution assumptions.

How to use this calculator

  1. Enter LTV and CAC in the same currency and customer basis.
  2. Check that all inputs use the same units, period and population scope.
  3. Change one assumption at a time when comparing scenarios.

Formula used by lifetime value to cac ratio calculator

LTV:CAC = estimated customer lifetime value ÷ customer acquisition cost.

  • LTV:CAC = estimated customer lifetime value ÷ customer acquisition cost.
  • Use compatible gross-margin and customer cohorts for LTV and CAC. A high ratio alone does not prove a scalable business or cash profitability.
  • The tool validates inputs and rounds displayed figures for readability; it does not validate assumptions against external records.

Worked examples

Worked example

Estimated LTV is 1,200 and CAC is 180.

1,200 ÷ 180 ≈ 6.67:1.

Estimated LTV:CAC is about 6.67:1.

Understanding the result

LTV:CAC compares estimated customer lifetime value with acquisition cost. It gives a ratio for customer economics but depends heavily on retention, margin and attribution assumptions.

Use compatible gross-margin and customer cohorts for LTV and CAC. A high ratio alone does not prove a scalable business or cash profitability.

Important notes

Use compatible gross-margin and customer cohorts for LTV and CAC. A high ratio alone does not prove a scalable business or cash profitability.

Treat the result as an estimate from the entered assumptions. For commercial, statistical, engineering or health-related decisions, verify relevant specifications and professional guidance.

Frequently asked questions

What is a good LTV:CAC ratio?

There is no universal target for every business model, growth stage or margin structure.

Does this include time to recover CAC?

No. Payback period is a different metric.

How should I interpret this result?

Use compatible gross-margin and customer cohorts for LTV and CAC. A high ratio alone does not prove a scalable business or cash profitability.

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