LTV:CAC Ratio Calculator
Calculate Customer Lifetime Value (LTV), LTV to CAC ratio, and assess whether your customer economics are healthy for sustainable growth.
How to Use the LTV:CAC Calculator
- Enter average monthly revenue per customer.
- Enter average customer lifespan in months.
- Enter gross margin percentage.
- Enter Customer Acquisition Cost (CAC).
- Click Calculate to see LTV, ratio, and health assessment.
使用例
- •Assessing the sustainability of customer acquisition spend.
- •Presenting unit economics to investors.
- •Setting CAC budget caps based on LTV targets.
- •Comparing LTV:CAC across customer segments.
計算式
LTV = avg revenue per customer × avg lifespan months × gross margin%. Ratio = LTV / CAC. Healthy if ratio ≥ 3.
よくある質問
What is LTV?
Customer Lifetime Value (LTV) is the total revenue a business can expect from a single customer over the duration of the relationship.
Why is LTV:CAC ratio important?
A ratio of 3:1 or higher indicates healthy unit economics. Below 1:1 means you are losing money on every customer acquired.
How can I improve my LTV:CAC ratio?
Increase LTV through upsells and retention programs, or reduce CAC through better targeting and organic growth channels.