Is Your Business Sustainable? LTV:CAC Reality Check

See if your customer economics actually work. Honest LTV to CAC analysis for business reality.

This ratio tells you whether your business model works. If customers are worth less than it costs to acquire them, you're burning money with every sale. The math is simple: divide customer lifetime value by acquisition cost. Below 1:1? You're losing money per customer. Between 1:1 and 3:1? Concerning — your margins are thin. Above 3:1? Healthy. Above 5:1? You might be under-investing in growth. This calculator shows you where you stand and what it means. No feel-good metrics — just the honest answer about your business sustainability.

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

  • Testing whether your business model is sustainable
  • Understanding if you can afford to scale
  • Identifying when acquisition costs are too high
  • Honest assessment of business health

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.

What if my ratio is below 1:1?

You're paying more to acquire customers than they're worth. Either reduce CAC, increase prices, improve retention, or reconsider the model.

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