LTV:CAC Ratio Calculator

Compare customer lifetime value with acquisition cost. Enter your own values below to see LTV to CAC and check the method behind it.

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How this calculator works

LTV to CAC = Customer lifetime value ÷ Acquisition cost per customer.

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What is LTV:CAC Ratio Calculator?

LTV:CAC Ratio Calculator helps you compare customer lifetime value with acquisition cost.

The main result is LTV to CAC. The formula, example and assumptions below explain how to interpret it.

How to use LTV:CAC Ratio Calculator

Use the example to get familiar with the form, then enter your own figures. Any rates in the example are illustrative. Check the field labels and units before calculating.

  1. Gather customer lifetime value and acquisition cost per customer. Use values from the same situation or reporting period.
  2. Replace the example customer lifetime value with your own value, then complete the other fields. Check the displayed units.
  3. Select Calculate and read LTV to CAC. Change one input and calculate again to compare a second scenario. Reset restores the original example.
  • Enter customer lifetime value, at least 0. Decimals are accepted.
  • Enter acquisition cost per customer, at least 0.000001. Decimals are accepted.

LTV:CAC Ratio Calculator: a worked example

With the inputs below, the result is 0.2 × (LTV to CAC). Follow the example, then replace these illustrative values with your own.

Example inputs and output
Input or outputExample value
Customer lifetime value200
Acquisition cost per customer1,000
LTV to CAC0.2 ×

Understanding the LTV:CAC Ratio result

The main output is LTV to CAC, expressed in ×. It applies to the inputs and operation you selected.

Displayed results use a readable number of decimal places. When checking a result by hand, keep extra precision until the last step. To compare scenarios, change one input at a time and keep the others fixed.

LTV:CAC Ratio Calculator: assumptions and common mistakes

A useful estimate starts with the right inputs. Check the following assumptions and limits before applying the result to your situation.

  • Separate revenue from cash receipts and cost from selling price. Check the denominator before comparing a margin with a markup.

For wider guidance, visit ICAI. The formula and scope of this specific tool are stated on this page.

LTV:CAC Ratio Calculator FAQs

What does LTV:CAC Ratio Calculator calculate?

LTV:CAC Ratio Calculator helps you compare customer lifetime value with acquisition cost. Its main output is LTV to CAC in ×.

What inputs do I need for LTV:CAC Ratio Calculator?

You need customer lifetime value and acquisition cost per customer. Use the field labels and units to match your figures to the formula.

Which formula does LTV:CAC Ratio Calculator use?

LTV to CAC = Customer lifetime value ÷ Acquisition cost per customer.

What is a worked example for LTV:CAC Ratio Calculator?

Example inputs: Customer lifetime value: 200; Acquisition cost per customer: 1,000. The result is 0.2 × (LTV to CAC).

How should I enter customer lifetime value?

Enter customer lifetime value, at least 0. Decimals are accepted.

How do I choose acquisition cost per customer?

Enter acquisition cost per customer, at least 0.000001. Decimals are accepted. The example uses 1,000; replace it if your circumstances differ.

How should I read LTV to CAC?

The main output is LTV to CAC, expressed in ×. It applies to the inputs and operation you selected.

Why might my LTV:CAC Ratio Calculator result differ from my records?

Separate revenue from cash receipts and cost from selling price. Check the denominator before comparing a margin with a markup. Differences in entered values, units or rounding can also change the comparison.

Can I compare two scenarios in LTV:CAC Ratio Calculator?

Yes. Note your first LTV to CAC, change customer lifetime value or another input, and select Calculate again. Editing a field clears the old result so it is not mistaken for a new calculation.

Is LTV:CAC Ratio Calculator free, and where are my inputs calculated?

This calculator is free to use without signing in. Its formula runs in your browser; calculator inputs are not sent to a calculation API. The inputs reset to the example values when you reset the form or start a fresh page.