LTV to CAC Ratio Calculator

Measure the long-term value of a customer against the cost of acquiring them. This is one of the most important metrics for sustainable growth.

Avg. Revenue Per User ($/mo)

Gross Margin (%)

Monthly Churn Rate (%)

Total Marketing & Sales Spend ($)

New Customers Acquired

Lifetime Value (LTV): -

Customer Acquisition Cost (CAC): -

A ratio of 3:1 or higher is generally considered healthy.

Understand Your Business Health

A simple way to calculate your LTV:CAC ratio.

1. Input LTV Variables
Enter your Average Revenue Per User (ARPU), Gross Margin, and monthly Customer Churn Rate.
2. Input CAC Variables
Enter your total Marketing & Sales spend over a period and the number of new customers acquired in that same period.
3. Analyze Your Ratio
The calculator instantly shows your LTV, CAC, and the critical LTV:CAC ratio, helping you determine if your acquisition strategy is profitable.