Calculating your LTV to CAC ratio is straightforward once you know the LTV to CAC Ratio formula and what each input means. This guide explains the method in plain language, walks through a manual calculation, and gives worked examples you can follow — then you can do it instantly with the LTV to CAC Ratio Calculator.
What is LTV to CAC Ratio?
The LTV to CAC Ratio calculation tells you your LTV to CAC ratio from a few simple inputs. The figure you are solving for here is the LTV to CAC ratio.
The LTV to CAC Ratio formula
The core formula is:
LTV to CAC ratio = Customer lifetime value ÷ Customer acquisition costHere is what each input means:
- Customer lifetime value — a money amount. Example: ₹15,000.
- Customer acquisition cost — a money amount. Example: ₹3,000.
How to calculate it step by step
- Write down the customer lifetime value (for example, ₹15,000).
- Write down the customer acquisition cost (for example, ₹3,000).
- Apply the formula above to get your LTV to CAC ratio.
- Double-check the result with the LTV to CAC Ratio Calculator.
Worked examples
Example 1
| Input / Output | Value |
|---|---|
| Customer lifetime value | ₹15,000 |
| Customer acquisition cost | ₹3,000 |
| LTV to CAC ratio | 5.00 |
With customer lifetime value of ₹15,000 and customer acquisition cost of ₹3,000, the LTV to CAC ratio works out to 5.00.
Example 2
With customer lifetime value of ₹30,000 and customer acquisition cost of ₹3,000, the LTV to CAC ratio works out to 10.00.
| Result | Value |
|---|---|
| LTV to CAC ratio | 10.00 |
Example 3
With customer lifetime value of ₹7,500 and customer acquisition cost of ₹3,000, the LTV to CAC ratio works out to 2.50.
| Result | Value |
|---|---|
| LTV to CAC ratio | 2.50 |
Tips for an accurate result
- Keep your units consistent — mixing, say, months with years or grams with kilograms is the most common source of error.
- Round only at the very end. Rounding inputs early can shift the final answer noticeably.
- Re-run the numbers whenever an input changes, rather than estimating from an old result.
Prefer not to do the maths by hand? — the LTV to CAC Ratio Calculator does it instantly, for free, with the formula and a worked example built in.
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