LTV stands for “lifetime value” per customer, and CAC stands for “customer acquisition cost”. The LTV-to-CAC ratio compares the value of a customer over their lifetime, compared to acquiring them. This metric compares the value of a new customer over its lifetime relative to acquiring it. If the LTV/CAC ratio is less than 1.0, the company is destroying value; if the KPI is greater than 1, it may be creating value, but more analysis is required. Generally speaking, a ratio greater than 3 is considered “good,” but that’s not necessarily the case. Calculating your LTV-to-CAC ratio is a great way to see if your company is positioned for sustainable growth. This ratio acts as a barometer for determining how much or how little you should spend on marketing and sales to maximize your growth and stay ahead of the competition.
CAC/LTV calculator
Easy-to-use print-ready dashboard for making manager's decisionsThis tool will help you to benchmark your company against the industry standards
Create business statistics with CAC, LTV and LTV-to-CAC levels monthlyForecast your LTV-to-CAC ration to understand the future of your business
LTV to CAC ratio
CAC to LTV calculator - LTV to CAC ratio
CAC payback time, months
CAC to LTV calculator - CAC payback time
Customers acquisition cost
CAC to LTV calculator - Customers acquisition cost
Lifetime value
CAC to LTV calculator Lifetime value
Inputs
CAC to LTV calculator Inputs
Lifetime
CAC to LTV calculator Lifetime
