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LTV:CAC Ratio Calculator

Calculate your Customer Lifetime Value to Customer Acquisition Cost ratio and get actionable insights.

Calculate your Customer Lifetime Value to Customer Acquisition Cost ratio and get actionable insights

Quarterly
Annual

Customer Acquisition Cost (CAC) - Annual Spend

CAC = (Marketing Costs + Sales Costs) ÷ # of New Customers (Annual)

Marketing Costs (Annual)

$0 $10K $20K $30K $40K $50K+
$0 $10K $20K $30K $40K $50K+
100
Total Marketing Costs: $40,000
Total Sales Costs: $40,000
Total New Customers: 400
Total CAC: $200.00

Customer Lifetime Value (LTV)

LTV = Monthly Avg. Order Value × Customer Lifespan (Months)

$100 $1K $2K $3K $4K $5K+
12
$1K $100K $200K $300K $400K $500K+

Results (Annual)

$200.00
CAC
$6000.00
LTV
60.0%
Gross Margin
30:1
✅ Sustainable & Scalable
LTV:CAC Ratio
Recommendation: Keep optimizing. Use this window to test new audiences, pricing strategies, and improved onboarding.

Ratio Benchmarks

1:1 or lower - Break Even Growth
Spending too much or poor retention
3:1 - Healthy & Sustainable
Ideal benchmark for most businesses
5:1+ - Under-Investing
Room to scale more aggressively