LTV : CAC Ratio Calculator
BusinessCalculate the ratio between customer lifetime value and customer acquisition cost — a key indicator of business sustainability.
LTV : CAC Ratio
How many dollars of customer value you generate for every dollar spent acquiring them.
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Odeh Ahwal0people find this calculator helpful
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Frequently Asked Questions
What is a healthy LTV:CAC ratio?
A ratio of 3:1 or higher is generally considered healthy — meaning you earn at least $3 in customer value for every $1 spent acquiring them. Below 1:1 means you're losing money on every customer.
Can the ratio be too high?
Yes — a ratio well above 5:1 can actually signal under-investment in growth. If your LTV:CAC is very high, you may be able to profitably spend more on acquisition to grow faster.
What if my ratio is too low?
A low ratio means you're either spending too much to acquire customers, not retaining them long enough, or not extracting enough value per customer — work on CAC efficiency or LTV-boosting levers like retention and upsells.
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