Calculate the ratio between customer lifetime value and acquisition cost. Use it to turn your own business data into a clear result without building a spreadsheet.
LTV to CAC Ratio Calculator
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What the LTV to CAC Ratio Calculator measures
The ratio helps compare customer value with the cost required to acquire that customer. Model growth, recurring revenue, acquisition economics and business runway with simple inputs.
The result is most useful when every input uses the same definitions and reporting period. This keeps comparisons between campaigns, products, customers or time periods meaningful.
When to use this calculator
- Use the LTV to CAC Ratio Calculator to run simple planning scenarios before making a business decision.
- Compare growth assumptions with current operating performance.
- Identify the variables that have the greatest effect on the result.
Formula
A ratio is a relative measure. Compare it with your own target, historical performance and economics rather than assuming one universal benchmark.
How to use this calculator
- Customer Lifetime Value — enter the value from the same report, forecast or business period as the other inputs.
- Customer Acquisition Cost — enter the value from the same report, forecast or business period as the other inputs.
- Select Calculate. The result updates immediately.
- Compare the output with a previous period, target or relevant internal benchmark before making a decision.
Worked example
Using the demonstration values — Customer Lifetime Value = 500, Customer Acquisition Cost = 150 — the calculator returns 3.33×. This example exists only to show how the formula behaves. Replace every demonstration value with your own data before using the result for planning or analysis.
How to interpret the result
The ratio helps compare customer value with the cost required to acquire that customer. These calculators support planning and scenario analysis; they are not a substitute for professional financial advice.
A stronger or weaker result does not always mean the underlying business is healthier or worse. Check the definition of Customer Lifetime Value, Customer Acquisition Cost, the attribution or accounting rules behind those inputs, and any costs or outcomes that the formula does not include.
Common mistakes to avoid
- Using Customer Lifetime Value and Customer Acquisition Cost from different reporting periods or definitions.
- Mixing monthly and annual figures in the same formula.
- Using assumptions that are not updated when the business changes.
Frequently asked questions
What does this calculator do?
Calculate the ratio between customer lifetime value and acquisition cost.
Where should I get the input values?
Use your own advertising platform, ecommerce system, accounting report, CRM, analytics platform or forecast—whichever system is authoritative for the metric. Keep all inputs on the same basis and date range.
Is there one good result I should target?
Usually not. A useful target depends on your margins, acquisition model, operating costs, channel, market and business goals. Your own historical performance is often a better starting benchmark than a generic number.
Can I use this for forecasting?
Yes. Enter forecast values to model a scenario, but treat the output as an estimate based on those assumptions rather than a prediction of future performance.
For details about formulas, rounding and limitations, see our Calculator Methodology.