Divide lifetime value by acquisition cost to test whether growth is economically sustainable.
The ratio divides one figure by the other and is read against a conventional benchmark of 3. Both the ratio and its percentage form are shown, because different audiences expect different presentations of the same number. A unit-economics ratio compresses two absolute figures into one comparable number, which is what makes it usable across companies and periods of different size.
LTV to CAC Ratio
LTV to CAC Ratio = Customer lifetime value ÷ Customer acquisition cost
LTV to CAC Ratio = Customer lifetime value ÷ Customer acquisition cost The ratio divides one figure by the other and is read against a conventional benchmark of 3. Both the ratio and its percentage form are shown, because different audiences expect different presentations of the same number.
A unit-economics ratio compresses two absolute figures into one comparable number, which is what makes it usable across companies and periods of different size.
This calculator takes 2 inputs: Customer lifetime value, Customer acquisition cost. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.