LTV:CAC Ratio Calculator
Enter your customer lifetime value (LTV) and acquisition cost (CAC) to get the ratio.
How to use this calculator
- 1Enter your customer lifetime value (LTV).
- 2Enter your customer acquisition cost (CAC).
- 3Read the ratio — a quick health check on your unit economics.
How the LTV:CAC Ratio Calculator works
The LTV:CAC ratio is the quickest health check on your unit economics: how many dollars a customer returns for every dollar you spend acquiring them. Around 3:1 is the common benchmark — enough margin to grow profitably. Below 1:1 you lose money on each customer; far above 3:1 can mean you’re under-investing in growth.
If the ratio is off, this tells you which side to fix: raise LTV through retention and pricing, or lower CAC through better targeting, referrals and conversion. Use the LTV and CAC calculators to find the weaker number first.
Ready to bill for it?
Create a professional invoice in one sentence with Aviy’s free AI invoice generator.
Create an invoice freeFrequently asked questions
What is the LTV:CAC ratio?
Lifetime value divided by acquisition cost. It shows how many dollars a customer returns for every dollar you spend acquiring them.
What is a good LTV:CAC ratio?
Around 3:1 is the common benchmark — enough margin to grow profitably. Below 1:1 you lose money on each customer; far above 3:1 may mean you’re under-investing in growth.
How do I improve it?
Raise LTV (retention, pricing, upsells) or lower CAC (better targeting, referrals, conversion). Use the LTV and CAC calculators to find the weaker side.
Related reading
Profit Margin Calculator: Formula, Examples and How to Use It
Use a profit margin calculator to measure how much you keep per sale. Get the formula, worked examples, benchmarks and tips to improve your margins.
Continue Reading
How Generative AI Saves Hours on Administrative Work
See how generative AI admin work tools cut hours from invoicing, email, scheduling and reporting - plus a practical playbook to start today.
Continue Reading
The Future of AI-Powered Business Management
A pillar guide to AI business management: how AI runs operations, finance, and admin in 2026, what to automate first, risks, and a practical adoption roadmap.
Continue Reading
Reducing Operational Costs Without Sacrificing Quality
A practical guide to reducing operational costs without sacrificing quality - proven strategies, smart automation and where to cut so you protect margins.
Continue Reading
Enterprise Invoice Management Explained
Enterprise invoice management explained: workflows, approvals, automation, audit trails and AI. A practical 2026 guide for growing finance teams.
Continue Reading