LTV:CAC Ratio Calculator

Calculate LTV to CAC ratio. Measure customer value against acquisition cost to optimize growth spending.

The LTV:CAC ratio compares customer lifetime value to customer acquisition cost. This crucial metric helps determine if your customer acquisition is sustainable and profitable.

Calculator

$
$
LTV:CAC Ratio
0.00:1
Business Health
Unsustainable - Losing money per customer
CAC Payback
0 months
Profit per Customer
$0.00

Common use cases

  • Marketing budget allocation
  • Growth strategy planning
  • Investor due diligence
  • Channel optimization

How to use

  1. Enter customer lifetime value
  2. Input customer acquisition cost
  3. View ratio and business health assessment

FAQ

What LTV:CAC ratio is ideal?

3:1 is considered healthy for most SaaS businesses. Higher ratios may indicate underinvestment in growth.

Is a very high ratio always good?

Not necessarily. Ratios above 5:1 often suggest you could spend more on customer acquisition to grow faster.

How often should I calculate this?

Monthly or quarterly. Track trends over time and segment by channel and customer type.

This calculator provides illustrative estimates for planning purposes only and does not constitute financial, tax, or legal advice.