The LTV to CAC ratio compares the lifetime value of a customer against what it costs to acquire one, and it is the fastest way to tell if a growth engine is healthy. A ratio below one means you lose money on every customer, a ratio around one barely breaks even, and the widely cited sweet spot for a strong subscription business is roughly three to one. Much higher than that can even signal underinvestment in growth. This calculator divides your customer lifetime value by your customer acquisition cost and labels the result so you know where you stand. Enter both figures, ideally profit based rather than revenue based, and read the ratio instantly. Use it to decide whether to pour more into a channel, to fix retention, or to cut acquisition spend. All math runs locally in your browser.
It divides customer lifetime value by acquisition cost, revealing how much value each customer returns per dollar spent to acquire them.
A ratio around 3 to 1 is often seen as healthy. Below 1 you lose money per customer, and very high may mean underinvesting in growth.
It summarizes unit economics in one number, showing whether the business makes back more than it spends to acquire customers.
The LTV to CAC ratio compares the lifetime value of a customer against what it costs to acquire one, and it is the fastest way to tell if a growth engine is healthy. A ratio below one means you lose money on every customer, a ratio around one barely breaks even, and the widely cited sweet spot for a strong subscription business is roughly three to one.
Yes. LTV to CAC Ratio Calculator is completely free, with no sign-up and no usage limits.
Yes. LTV to CAC Ratio Calculator runs in any modern web browser. There is nothing to download or install.
Yes. LTV to CAC Ratio Calculator runs entirely on your device in your browser, so nothing you enter is uploaded to a server.