LTV:CAC Ratio Calculator
See whether your customer acquisition pays off. Enter your average order value, margin, how often customers buy, and your cost to acquire one — and get lifetime value and the all-important LTV:CAC ratio.
Customer economics
Results
- Customer lifetime value (LTV)
- $108.00
- LTV : CAC ratio
- 3.60 : 1
- Orders to recover CAC
- 0.8 orders
Gross-profit LTV over the customer's life.
Healthy — strong acquisition economics.
Calculations run live in your browser. Nothing is stored.
What this measures
LTV:CAC compares the gross profit a customer generates over their lifetime (LTV) against what it cost to acquire them (CAC). It tells you whether your growth engine is building or burning value.
A widely used benchmark is 3:1 — three dollars of lifetime gross profit for every dollar of acquisition cost. Below 1:1 you lose money on each customer; far above 3:1 can mean you're under-investing in growth.
The formula
LTV = AOV × Gross margin × Orders per customer. LTV:CAC = LTV ÷ CAC.
Worked example
A $60 AOV at 60% margin with 3 lifetime orders gives LTV = 60 × 0.60 × 3 = $108. Against a $30 CAC, the ratio is 108 ÷ 30 = 3.6 : 1 — healthy.
Frequently asked questions
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