LTV:CAC Ratio Calculator
Determine the health of your business model by comparing lifetime value to acquisition cost.
The LTV:CAC ratio is the gold standard for measuring the efficiency of a growth engine. A ratio of 3:1 is generally considered the benchmark for a healthy, sustainable business.
This ratio is critical for ROI because it tells you if your growth is profitable. A ratio that is too low (e.g., 1:1) means you are spending too much to get customers; a ratio that is too high (e.g., 10:1) might mean you are underspending and missing out on market share.
Privacy: Business model metrics are calculated locally. No LTV or CAC data is transmitted to our servers.
Terms: Calculations are based on the inputs provided. Ensure your LTV accounts for gross margin, not just revenue.
Terms: Calculations are based on the inputs provided. Ensure your LTV accounts for gross margin, not just revenue.
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