How to use this tool
- Enter customer lifetime value, customer acquisition cost.
- Select Calculate to view the result.
- Check the method and assumptions below before using the result.
The method, explained
LTV:CAC = lifetime value/acquisition cost.
Using customer lifetime value = 500 money, customer acquisition cost = 100 money, the result is 5 ×. Change these example inputs to match your task; use the method above to check each step.
What to keep in mind
Use consistent currencies, reporting periods and accounting definitions. This arithmetic estimate excludes items not entered in the form.
Common questions
Which inputs does this calculation need?
Compare lifetime customer value with acquisition cost. Enter customer lifetime value in money, customer acquisition cost in money. The filled example is editable and is not a saved personal record.
How should I interpret the result?
Use consistent currencies, reporting periods and accounting definitions. This arithmetic estimate excludes items not entered in the form.
Methodology maintained by ClarityKit. How these tools are built and checked.