CAC to LTV Ratio Calculator
Check if acquisition cost is healthy against lifetime value.
Enter your values
Enter the customer acquisition cost in $.
Enter the customer lifetime value in $.
Results update instantly as you type — no submit needed. Your values are remembered on this device, and the shareable link reopens the calculator with exactly these numbers.
- LTV : CAC ratio
- 4 : 1
- Verdict
- Healthy
- Profit per customer
- $450
- Target CAC for 3:1
- $200
Quick answer
A healthy CAC:LTV ratio is at least 1:3, meaning lifetime value is three times or more the acquisition cost.
ratio = LTV / CAC
At a glance
| What it does | Check if acquisition cost is healthy against lifetime value. |
|---|---|
| Category | Business |
| Inputs needed | Customer acquisition cost, Customer lifetime value |
| Main output | LTV : CAC ratio |
| Formula | ratio = LTV / CAC |
| Cost | Free — no sign-up, no download |
How to use the CAC to LTV Ratio Calculator
- 1Enter your fully loaded customer acquisition cost.
- 2Enter estimated lifetime value per customer.
- 3A ratio below 1:1 means you lose money on every customer; aim for 3:1 or better.
Inputs explained
- Customer acquisition cost($)
- Enter the customer acquisition cost in $.
- Customer lifetime value($)
- Enter the customer lifetime value in $.
Worked example
Using the values the calculator loads with:
Inputs
- Customer acquisition cost150 $
- Customer lifetime value600 $
Results
- LTV : CAC ratio4 : 1
- VerdictHealthy
- Profit per customer$450
- Target CAC for 3:1$200
Frequently asked questions
What counts as CAC?
All sales and marketing spend for a period divided by new customers won in that period.
Is higher ratio always better?
Very high ratios (10:1+) can mean you are underinvesting in growth.
What do I need to enter into the CAC to LTV Ratio Calculator?
Just 2 values: customer acquisition cost, customer lifetime value. Every field starts with a realistic example, so you can change one number at a time and watch the result update instantly.
How does the CAC to LTV Ratio Calculator work out the answer?
A healthy CAC:LTV ratio is at least 1:3, meaning lifetime value is three times or more the acquisition cost. It applies the formula ratio = LTV / CAC and shows the working so you can check each step by hand.
Is the CAC to LTV Ratio Calculator free, and do I need an account?
It is completely free with no sign-up, no download and no usage limit. Everything is calculated in your browser, so the numbers you type never leave your device.
Results are estimates for general information. For medical, legal, structural or financial decisions, confirm with a qualified professional.