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Marketing Calculators

LTV to CAC Ratio Calculator

Verified formula Updated Jun 2026 Private — runs on your device

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Verified formula Private

LTV to CAC ratio

5.00

For general information only — not financial, tax, legal or medical advice. Verify before you rely on it.

How to use the LTV to CAC Ratio Calculator

The LTV to CAC Ratio Calculator works out your ltv to cac ratio in an instant. Enter customer lifetime value and customer acquisition cost and the result updates as you type — it is free, needs no sign-up, and runs entirely in your browser so your figures stay private.

  1. Enter the customer lifetime value.
  2. Enter the customer acquisition cost.
  3. Read off your ltv to cac ratio — the calculator updates automatically, with no button to press.

Formula

The LTV to CAC Ratio Calculator uses the formula:

LTV to CAC ratio = Customer lifetime value ÷ Customer acquisition cost

Worked example

For example, with customer lifetime value of 15,000 and customer acquisition cost of 3,000, the ltv to cac ratio is 5.00.

Inputs used
Customer lifetime value 15,000
Customer acquisition cost 3,000
Results
LTV to CAC ratio 5.00

Results are estimates for educational use, not professional advice.

Key terms explained

Customer acquisition cost
The average cost of winning one new customer (CAC).
Customer lifetime value
The total revenue a customer is expected to bring over their relationship with a business (CLV).
Loan to value
The loan amount as a percentage of the asset value (LTV) — a key risk measure for lenders.
Ratio
A comparison of two quantities showing how many times one contains the other.

Frequently asked questions

It divides customer lifetime value by acquisition cost. 15,000 LTV against 3,000 CAC gives a ratio of 5.

Around 3 to 1 is often seen as healthy, meaning each customer returns about three times their acquisition cost.

A ratio near 1 means you barely recover acquisition costs, leaving little for operations and profit.

A very high ratio may signal underinvestment in growth, where spending more to acquire customers could pay off.

The LTV to CAC Ratio Calculator uses the formula: LTV to CAC ratio = Customer lifetime value ÷ Customer acquisition cost. For example, with customer lifetime value of 15,000 and customer acquisition cost of 3,000, the ltv to cac ratio is 5.00.

Enter the customer lifetime value. Enter the customer acquisition cost. Read off your ltv to cac ratio — the calculator updates automatically, with no button to press.

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