CAC To LTV Ratio Calculator
$0.00
MAC & PC Compatible, Fully Unlocked
Immediate download after the payment
| Free Download Available! Get CAC/LTV calculator |
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
Derive logical conclusions about your company's marketing strategy
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