LTV:CAC Ratio Calculator
Compare customer lifetime value against acquisition cost to judge whether your growth model is efficient.
LTV:CAC ratio
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Value multiple
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Efficiency rating
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Value surplus
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Summary
Key insights
How the LTV:CAC ratio works
The LTV:CAC ratio compares how much a customer is worth against how much it costs to acquire that customer. It is one of the clearest unit economics signals for founders.
What this calculator covers
- Customer value compared to acquisition cost
- A simple efficiency multiple for growth
- Surplus value after acquisition spend
- A plain-English quality assessment
Why founders use this
- To assess whether growth is sustainable or fragile
- To benchmark sales and marketing performance
- To improve spend decisions across channels
- To identify whether retention or acquisition is the bigger lever
Common questions
Quick answers to common founder questions related to this tool.
What is a good LTV:CAC ratio?
Many operators view around 3:1 as a strong benchmark, though acceptable levels vary by margin, payback speed, and business model.
Can a very high ratio still be a problem?
Yes. A very high ratio can sometimes suggest under-investment in growth if acquisition is too conservative.