Acquisition
LTV to CAC ratio calculator
Enter your customer lifetime value and your customer acquisition cost. The calculator gives the ratio between them.
LTV to CAC ratio
2.4 : 1
- Lifetime profit after acquisition
- $2,800
How to read the result
A common rule of thumb in SaaS is a ratio of about 3 to 1. Much lower and acquisition is eating the profit. Much higher and you are probably spending too little to grow.
The ratio says nothing about timing. A healthy ratio that takes four years to pay back can still run a company out of cash, so read it with CAC payback.
The formula
AcquisitionLTV to CAC ratio = customer lifetime value ÷ customer acquisition cost.
Frequently asked questions
Yes, if you can attribute customers. A blended ratio can hide one channel that pays back well and another that never does.
The gross-margin version, so that both sides of the ratio are in profit terms. The customer lifetime value calculator gives it.
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