LTV:CAC Ratio Calculator
LTV:CAC Ratio: LTV:CAC = LTV ÷ CAC. Methodology stated, your own inputs only.
In short
LTV:CAC Ratio: LTV:CAC = LTV ÷ CAC. Methodology stated, your own inputs only.
Formula: LTV:CAC = LTV ÷ CAC.
What this calculator does
LTV:CAC Ratio: LTV:CAC = LTV ÷ CAC. Methodology stated, your own inputs only. Worked example, questions and limitations included.
Use it to turn Currency (symbol only, never converted), Customer lifetime value (your figure), Customer acquisition cost (your figure) into a checked result you can compare, copy, or rerun with different assumptions.
The page shows the formula, a numeric worked example, and the assumptions that affect this customer economics calculation.
Inputs and what they mean
- Currency (symbol only, never converted)
- — choice value.
- Customer lifetime value (your figure)
- — number value.
- Customer acquisition cost (your figure)
- — number value.
How to use it
- Enter each value in the unit shown next to the box (use the unit converter first if your numbers are in other units).
- Check the breakdown to see every intermediate step.
- Read the limitations before relying on the result.
Formula
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).
Worked example
Matching definitions
- 2,400 ÷ 1,500 = 1.60 : 1.
Reading the result
The headline figure is the main answer. Any breakdown underneath shows the parts that make it up, so you can check the working and see what changes when you adjust an input.
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.
Reference: OpenStax
Last reviewed:
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.
Sources
Method based on OpenStax.
Cite this page
Free Calculator. (2026, October 15). LTV:CAC Ratio Calculator. https://freecalculator.tech/tools/ltv-cac-ratio-calculator
"LTV:CAC Ratio Calculator." Free Calculator, 15 Oct. 2026, https://freecalculator.tech/tools/ltv-cac-ratio-calculator.
LTV:CAC Ratio Calculator — Free Calculator, https://freecalculator.tech/tools/ltv-cac-ratio-calculator
Related tools
CAC: CAC = acquisition spend ÷ new customers acquired, for the same period. Methodology stated, your own inputs only.
LTV: LTV = ARPU × gross margin ÷ churn rate (margin-adjusted). Methodology stated, your own inputs only.
CAC Payback: Payback months = CAC ÷ (monthly revenue per customer × gross margin). Methodology stated, your own inputs only.
Gross Revenue Retention: GRR = (starting recurring revenue − contraction − churn) ÷ starting recurring revenue × 100. Methodology stated, your own inputs only.
Net Revenue Retention: NRR = (starting recurring revenue + expansion − contraction − churn) ÷ starting recurring revenue × 100. Methodology stated, your own inputs only.
Churn Rate: Customer churn = customers lost ÷ customers at start × 100. Methodology stated, your own inputs only.