LTV:CAC Ratio Calculator

Calculate your Customer Lifetime Value to Customer Acquisition Cost ratio.

Loading Tool...

Results will appear here.

The Golden Ratio for Business Health: LTV to CAC

The LTV:CAC ratio is a critical metric that compares the lifetime value of a customer to the cost of acquiring them. It's a powerful indicator of a business's long-term viability and profitability.

What it means:

  • A ratio below 1:1 means you're spending more to acquire customers than you earn from them (losing money).
  • A ratio of 3:1 is often considered a healthy benchmark for many e-commerce businesses.
  • A ratio above 5:1 might suggest you are underinvesting in marketing and could be growing faster.
This tool helps you calculate this vital ratio to understand if your marketing efforts are building a sustainable business.