Calculator Tool
LTV:CAC Calculator workspace
Measure whether acquisition efficiency is healthy by comparing customer lifetime value against CAC.
LTV:CAC ratio
4:1
Many growth teams target around 3:1 as a healthy baseline.
Value comparison
Unit economics status: Healthy
Formula and method
This calculator compares lifetime value and acquisition cost directly to highlight whether unit economics are healthy enough for scale.
Example calculation
These examples show how the LTV:CAC ratio helps decide whether a growth model is ready to scale aggressively.
Example 1
An LTV of 24,000 and CAC of 6,000 produces a 4:1 ratio, often considered healthy for growth-stage campaigns.
Example 2
A 1.5:1 ratio may indicate that acquisition spend is too high for current retention or margin levels.
LTV:CAC Calculator FAQ
What is a healthy LTV:CAC benchmark?
Many teams use around 3:1 as a baseline. Lower ratios can pressure cash flow, while very high ratios may indicate under-investment in growth.
Can this metric be used alone?
No. Pair it with CAC payback, retention, and campaign profitability to avoid over-simplified decisions.
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