LTV:CAC Ratio Calculator
Compare lifetime value against acquisition cost and read the ratio in plain English.
Check whether acquisition economics make sense
LTV:CAC compares what a customer is worth against what it costs to acquire them. It is a blunt but useful signal for growth quality: too low and acquisition is inefficient; very high and you may have room to invest more.
A ratio around 3:1 is a common sign of a healthy model; below 1:1 you lose money on every customer, and far above 3:1 can mean you are under-investing in growth.
This calculator margin-adjusts lifetime value, divides it by CAC, and gives a plain-English health note. Use it with payback period and retention, not as a standalone decision.
Private planning math
The numbers are calculated locally. Unit economics and growth assumptions are not uploaded.
Frequently Asked Questions
What is a good LTV:CAC ratio?
Many teams aim around 3:1 or better, but healthy targets vary by business model, payback period, and cash flow.
Should LTV use gross margin?
Yes. Margin-adjusted LTV is usually more useful than revenue-only LTV.
Can the ratio be too high?
Sometimes. A very high ratio may mean you are underinvesting in growth.
Is this private?
Yes. It runs locally in your browser.
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