LTV:CAC Calculator
Calculate the LTV:CAC ratio from customer lifetime value and customer acquisition cost to check whether your growth model looks sustainable.
Aim this page at SaaS teams, founders, and operators who want a quick way to assess whether lifetime value is strong enough relative to customer acquisition cost.
Quick comparison
Review this metric alongside related calculators for a clearer picture of traffic cost, efficiency, profitability, or conversion performance.
LTV:CAC Calculator
Enter your values below to calculate the result instantly.
Results
Example values are prefilled so you can see how the calculator works.
Quick read
The main number to watch here is ltv:cac ratio. A higher LTV:CAC ratio usually suggests healthier unit economics because customer value is covering acquisition cost more comfortably.
Learn the metric behind the calculator
If you want more context, these guides explain how the metric works, how to interpret it, and how to compare it with related performance measures.
CPA vs CAC
↗Understand the difference between CPA and CAC, why acquisition cost is not always customer cost, and when each metric is the better decision-making lens.
How to calculate CAC
↗Learn the CAC formula, how customer acquisition cost differs from CPA, and how to interpret CAC with better unit-economics context.
LTV:CAC ratio explained
↗Learn what the LTV:CAC ratio means, how to calculate it, and why it is more useful when paired with payback period and realistic lifetime value assumptions.
What is a good LTV:CAC ratio?
↗Learn how to judge LTV:CAC ratio in context, why a bigger ratio is not always enough, and how payback timing changes what healthy really looks like.
What is a good CAC?
↗Learn how to judge customer acquisition cost in context, why CAC only makes sense relative to customer value, and what to compare it against.
Formula
LTV:CAC = Customer Lifetime Value / Customer Acquisition Cost
LTV:CAC compares the value a customer is expected to generate over time against what it costs to acquire that customer. It is one of the simplest unit-economics checks for growth sustainability.
How to use this calculator
- 1Enter your estimated customer lifetime value.
- 2Enter customer acquisition cost using the same customer definition and acquisition scope.
- 3The calculator divides lifetime value by CAC to show the LTV:CAC ratio.
What this metric tells you
A higher LTV:CAC ratio usually suggests healthier unit economics because customer value is covering acquisition cost more comfortably.
A weak ratio can signal that acquisition is too expensive, retention is too weak, or gross profit per customer is not strong enough.
The ratio becomes more useful when paired with payback period, churn, and contribution margin context.
Common use cases
- Checking whether customer acquisition looks sustainable.
- Comparing unit economics across segments, channels, or plans.
- Reviewing whether customer value has improved enough to support higher acquisition spend.
Related search topics
People looking for this tool often also search for closely related terms, formulas, and metric definitions.
Worked example
Example: calculating LTV:CAC from lifetime value and CAC
If customer lifetime value is $1,200 and CAC is $300, your LTV:CAC ratio is 4.0x. That means expected customer value is four times acquisition cost.
FAQ
What does LTV:CAC tell you?+
It tells you how much customer value you generate relative to the cost of acquiring that customer. It is a simple check on whether growth economics look viable.
Can a high LTV:CAC still be misleading?+
Yes. The ratio can look strong if lifetime value assumptions are too optimistic or if the business ignores margin, churn, or payback timing.
Is LTV:CAC better than CAC alone?+
It answers a different question. CAC tells you what acquisition costs, while LTV:CAC compares that cost with expected customer value.
Should I review payback period too?+
Yes. LTV:CAC shows the size of the return, while payback period helps show how quickly that acquisition cost is recovered.
Important note
This calculator is provided for general informational and planning purposes only. Results are based on the values you enter and on simplified formulas.
Real-world performance can vary because of attribution settings, platform reporting differences, margins, refunds, conversion quality, channel mix, and other business factors.
Use calculator outputs as a quick decision aid, not as financial, legal, tax, accounting, or investment advice.
Related calculators
Explore closely related tools to compare traffic cost, efficiency, profitability, and conversion performance more clearly.
CAC Calculator
↗Calculate customer acquisition cost from marketing spend and new customers acquired so you can see what it really costs to add one customer.
Payback Period Calculator
↗Calculate payback period from CAC and monthly gross profit per customer to estimate how long it takes to recover acquisition cost.
ROI Calculator
↗Calculate return on investment from gain and cost to understand overall profitability.
MER Calculator
↗Calculate MER from total revenue and total marketing spend to understand blended marketing efficiency across your full acquisition program.