ClarityKitFind a tool
Business

LTV to CAC Ratio Calculator

Compare lifetime customer value with acquisition cost.

Use a consistent reporting periodCheck the calculation below
Business dashboard
Business dashboard

Use figures from the same reporting period.

See the method

Enter your business figures

Runs on your device

Your key metric

Your result

Let’s calculate.

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.

Input reference and sample values

Use the units and choices shown for each field. Sample values are provided for practice, not as recommendations.

InputFormat and unitsSample
Customer lifetime valueNumeric value. Unit: money. Zero or positive.500
Customer acquisition costNumeric value. Unit: money. Must be greater than zero.100

Result for these sample inputs

5 ×

Select Try the example in the form to load these values and calculate them again. This replaces the current form inputs. Compare the result with the method and worked explanation below.

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.

Methodology maintained by ClarityKit. How these tools are built and checked.