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LTV to CAC Ratio

Metrics advanced FOUNDERCMOCFO

What is LTV to CAC Ratio?

LTV to CAC Ratio compares customer lifetime value against customer acquisition cost to evaluate acquisition efficiency.

Also known as: LTV/CAC, LTV:CAC

LTV to CAC Ratio Formula

LTV:CAC Ratio = LTV / CAC
Variable Meaning
CAC Customer acquisition cost.
LTV Customer lifetime value.
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How to Calculate LTV to CAC Ratio

Worked example

LTV
$30,000
CAC
$5,000
→ LTV:CAC Ratio
6

LTV to CAC Ratio Calculator

Try it with your numbers

LTV:CAC Ratio6
LTV:CAC Ratio = LTV / CAC
Variable Meaning
CAC Customer acquisition cost.
LTV Customer lifetime value.

Worked example

LTV
$30,000
CAC
$5,000
→ LTV:CAC Ratio
6

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LTV to CAC Ratio Benchmarks

Segment Level Benchmark
general good 3 x
general great 6 x

LTV to CAC Ratio vs Related Metrics

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