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)
Total: $10000 | Customers: 100
100
Customer Lifetime Value (LTV)
LTV = Monthly Avg. Order Value × Customer Lifespan (Months)
12
Results (Annual)
$200.00
CAC
$6000.00
LTV
60.0%
Gross Margin
30:1
✅
Sustainable & Scalable
LTV:CAC Ratio
Marketing Channel Performance
| Channel | Budget | Customers | CAC | LTV:CAC |
|---|
Channels sorted by LTV:CAC ratio (highest to lowest)
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
