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CAC to LTV Ratio Calculator

Check if acquisition cost is healthy against lifetime value.

Enter your values

ⓘ Live results

Results
LTV : CAC ratio
4 : 1
Verdict
Healthy
Profit per customer
$450
Target CAC for 3:1
$200

Quick answer

A healthy CAC:LTV ratio is at least 1:3, meaning lifetime value is three times or more the acquisition cost.

ratio = LTV / CAC

How to use the CAC to LTV Ratio Calculator

  1. 1Enter your fully loaded customer acquisition cost.
  2. 2Enter estimated lifetime value per customer.
  3. 3A ratio below 1:1 means you lose money on every customer; aim for 3:1 or better.

Worked example

Using the values the calculator loads with:

Inputs

  • Customer acquisition cost150 $
  • Customer lifetime value600 $

Results

  • LTV : CAC ratio4 : 1
  • VerdictHealthy
  • Profit per customer$450
  • Target CAC for 3:1$200

Frequently asked questions

What counts as CAC?

All sales and marketing spend for a period divided by new customers won in that period.

Is higher ratio always better?

Very high ratios (10:1+) can mean you are underinvesting in growth.

About this calculator

Results are estimates for general information. For medical, legal, structural or financial decisions, confirm with a qualified professional.