LTV:CAC Ratio Calculator
See whether your customers are worth more than they cost to acquire. The LTV:CAC ratio is one of the clearest signals of profitable, sustainable growth.
Calculate your LTV:CAC ratio
The ratio equals lifetime value divided by customer acquisition cost, shown as X to 1. A 3:1 ratio is a common healthy benchmark, while below 1:1 means you lose money on every customer.
How the LTV:CAC ratio works
Two numbers tell you if acquisition pays off.
Enter your lifetime value
Add your LTV, or use lifetime gross profit for a stricter view that accounts for the cost of serving each customer. Gross profit gives the more honest ratio.
Enter your acquisition cost
Add your fully loaded CAC, including ad spend, sales and marketing labor, and tools. An incomplete CAC makes the ratio look better than it is.
Read your ratio
We divide LTV by CAC and show it as X to 1. Higher is better up to a point, while a very high ratio can mean you are underinvesting in growth.
Frequently Asked Questions
Common questions about the LTV:CAC ratio.
Protect the profit behind every customer
Invoice My Clients helps you bill reliably and collect on time, so the lifetime value you model actually lands in your bank account.
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