# LTV:CAC Ratio Calculator

> LTV:CAC Ratio: LTV:CAC = LTV ÷ CAC. Methodology stated, your own inputs only.

Page: https://freecalculator.tech/tools/ltv-cac-ratio-calculator
Last reviewed: 2026-10-15

## Formula

LTV:CAC = LTV ÷ CAC.

- Methodology: ratio of lifetime value to acquisition cost; both must use matching definitions (e.g. margin-adjusted LTV, fully loaded CAC).
- No target ratio is assumed or judged.
- Get inputs from the LTV and CAC calculators.
- LTV:CAC = LTV ÷ CAC.
- Inputs used: Currency (symbol only, never converted), Customer lifetime value (your figure), Customer acquisition cost (your figure).

## Inputs

- Currency (symbol only, never converted)
- Customer lifetime value (your figure)
- Customer acquisition cost (your figure)

## Worked example: Matching definitions

$2,400 margin LTV, $1,500 fully loaded CAC.
1. 2,400 ÷ 1,500 = 1.60 : 1.

## Common questions

### Is 3:1 the target?

It is a widely repeated rule of thumb, not a standard. We don't judge your ratio.

### Revenue or margin LTV?

Margin LTV is more conservative; state which you used. Check the formula, example, and limitations on this page before using the result for a real customer economics decision.

### What is a good value?

We don't assume an industry-standard figure. Compare against your own history and plan, not a rule of thumb.

### How do I use the LTV:CAC Ratio Calculator?

Enter the required values for Currency (symbol only, never converted), Customer lifetime value (your figure), Customer acquisition cost (your figure). The calculator applies the formula on this page and shows the main result with any supporting breakdown so you can check the arithmetic.

### What formula does the LTV:CAC Ratio Calculator use?

LTV:CAC = LTV ÷ CAC. The visible formula section above lists the calculation path and the edge cases the page handles, so the result can be checked without relying on the form alone.

### Can the LTV:CAC Ratio Calculator be used for exact decisions?

Use it as a calculation aid, not as a substitute for checking the underlying rule, contract, policy, or professional advice that applies to your situation. When a result depends on local rules, personal details, prices, or dates, enter those values yourself and confirm them before acting.

## Limitations and assumptions

- Only as good as the LTV and CAC inputs.
- Ignores timing of cash.
- Results are educational estimates built only from the figures you enter. They are not personalised investment, tax, legal or accounting advice. Rates, growth and discount assumptions are always yours to choose.
- The result depends on the values you enter for this ltv:cac ratio calculator; it does not supply missing rates, rules, prices, dates, or assumptions for you.

## Sources

- OpenStax — https://openstax.org/books/principles-marketing/pages/1-unit-introduction

## Cite this page

- APA: Free Calculator. (2026, October 15). LTV:CAC Ratio Calculator. https://freecalculator.tech/tools/ltv-cac-ratio-calculator
- MLA: "LTV:CAC Ratio Calculator." Free Calculator, 15 Oct. 2026, https://freecalculator.tech/tools/ltv-cac-ratio-calculator.
- Link: LTV:CAC Ratio Calculator — Free Calculator, https://freecalculator.tech/tools/ltv-cac-ratio-calculator