Business

LTV to CAC Ratio Calculator

Compare lifetime customer value with acquisition cost.

Use a consistent reporting periodCheck the calculation below

Your business figures

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METRIC SNAPSHOT

Your result

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Use the Calculate button to see your result.

Review the method below for assumptions and conventions.

How to use this tool

  1. Enter customer lifetime value, customer acquisition cost.
  2. Select Calculate to view the result.
  3. Check the method and assumptions below before using the result.

The method, explained

LTV:CAC = lifetime value/acquisition cost.

A WORKED EXAMPLE

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.