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CAC To LTV Ratio Calculator

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MAC &PC Compatible, Unlocked, NO VBA Macro

The customer is always right, but how much is the customer actually worth? Our LTV-to-CTC Ratio Analysis answers this question for you. "Lifetime Value", or LTV, per customer is how much a customer is likely to spend on a brand over the customer's lifetime. The "Customer Acquisition Cost", or CAC, is the cost a business incurs to acquire a new customer. Thus, the LTV-to-CAC ratio compares the value of a new customer over its lifetime relative to acquiring them.

A LTV/CAC ratio of less than 1.0 indicates the company is losing value; however, if the LTV/CAC is greater than 1, it also does not automatically mean the company is creating value. It is likely, but requires further analysis. A LTV/CAC ratio of 3 or higher is usually considered value productive. This ratio is a useful tool to analyze if a company's consumer base and marketing strategy (which is what converts strangers into consumers) is sustainably value-producing.

Use this ratio as a barometer for allocating budget to marketing and sales, based on how strategy translates to growth.

CAC/LTV calculator

Benchmark your company's position against industry standards

Generate monthly or yearly business metrics based on CAC, LTV and LTV-to-CAC

Create forecasts with your LTV-to-CAC ratio, to project how the future of growth looks like for your business

Customer Reviews

Based on 11 reviews
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T
Tina

Perfect

J
Jasper

Cool

E
Evelyn

Great tool

R
Raewyn Riaz

Incredible

S
Stuart

First-class

Customer Reviews

Based on 11 reviews
55%
(6)
45%
(5)
0%
(0)
0%
(0)
0%
(0)
T
Tina

Perfect

J
Jasper

Cool

E
Evelyn

Great tool

R
Raewyn Riaz

Incredible

S
Stuart

First-class

Customer Reviews

Based on 11 reviews
55%
(6)
45%
(5)
0%
(0)
0%
(0)
0%
(0)
T
Tina

Perfect

J
Jasper

Cool

E
Evelyn

Great tool

R
Raewyn Riaz

Incredible

S
Stuart

First-class

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