When to use this calculator
Compare an entered lifetime customer value with acquisition cost. Compare consistent cohorts and state whether LTV is revenue, gross profit or discounted cash value.
Explore the marketing & customer calculators for other questions in this topic. For a related calculation, use the Net Promoter Score Calculator: Calculate a net promoter score from grouped survey counts.
PUTTING IT INTO PRACTICE
LTV to CAC Ratio: a worked example
The values below are an illustrative example, not a recommendation. Replace them with measurements or assumptions that match your question.
| Input | Example value |
|---|---|
| Lifetime value under your definition | 300 |
| Customer acquisition cost | 100 |
| Result | 3 × |
- Check the input labels and enter the example values above.
- Apply the relationship: LTV/CAC = lifetime value/acquisition cost.
- The result is 3 ×, rounded for display.
How to interpret your result
Compare consistent cohorts and state whether LTV is revenue, gross profit or discounted cash value.
Define the event, audience and attribution window before calculating a rate. Clicks, customers and orders are different units. Acquisition cost and campaign CPA may cover different spending categories.
Frequently asked questions
Should I count unique users or total events?
Use the definition matching your metric. State it consistently because repeat events can produce a different rate from unique people.
When is the ltv to cac ratio calculator useful?
Compare an entered lifetime customer value with acquisition cost. Compare consistent cohorts and state whether LTV is revenue, gross profit or discounted cash value.
How do I use the ltv to cac ratio calculator?
Enter lifetime value under your definition, customer acquisition cost. The result updates automatically. Use the units shown beside each input; the example values illustrate the method.
Which formula does this calculator use?
LTV/CAC = lifetime value/acquisition cost.
What should I check before using the result?
Compare consistent cohorts and state whether LTV is revenue, gross profit or discounted cash value.
How are results rounded?
Scalar numbers display up to six decimal places, with scientific notation for very large or small values. Text, fraction, date and schedule outputs use the format described on the tool. Intermediate calculations use JavaScript floating-point arithmetic. Keep sensible precision for your measurements.
Calculators Map editorial process · Updated · Methods and limitations