LTV:CAC Ratio Calculator
LTV:CAC Ratio: Customer Lifetime Value vs Acquisition Cost.. Free, no account needed – works offline.
LTV:CAC Ratio
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How the LTV:CAC Ratio Works
Calculates LTV from ARPU, margin, and churn; then divides by CAC (marketing spend / new customers). A ratio of 3:1 or higher is good.
ARPU $100, margin 80%, monthly churn 5% → LTV = (100*0.8)/0.05 = $1,600; CAC = $5,000/50 = $100 → ratio 16x.
Common Mistakes
- Using ARPU instead of gross margin:
- Monthly vs. annual churn confusion:
Frequently Asked Questions
What is a good LTV:CAC ratio?
3:1 or greater indicates healthy unit economics.