LTV:CAC Calculator
Compare customer lifetime value with customer acquisition cost, or work backward to a required LTV or maximum CAC.
How to calculate LTV:CAC
Divide customer lifetime value by customer acquisition cost.
What can this calculator solve?
- LTV:CAC ratio: when you know customer lifetime value and CAC.
- Required LTV: when you know CAC and a target ratio.
- Maximum CAC: when you know LTV and a target ratio.
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LTV:CAC calculator FAQ
What does LTV:CAC mean?
It compares the estimated value created by a customer over the customer relationship with the cost of acquiring that customer.
Is 3:1 always a good LTV:CAC ratio?
No. Three-to-one is a commonly cited planning reference, not a universal rule. Economics vary significantly by business model, margin, churn and growth strategy.
Should LTV use revenue or gross profit?
For unit-economics decisions, a margin-adjusted or gross-profit-based lifetime value is often more informative than raw revenue LTV. Use a consistent definition when comparing periods or channels.