What is CAC?
Customer Acquisition Cost (CAC) measures how much money a business spends to acquire a new customer through marketing and sales efforts.
Financial Planning
CAC:LTV Ratio Calculator
Understand whether your customer acquisition strategy is sustainable by comparing Customer Acquisition Cost (CAC) against Customer Lifetime Value (LTV).
Results
Unit Economics
ExceptionalCAC
$100
Average cost to acquire one customer.
LTV
$1,200
Estimated revenue per customer over lifetime.
CAC:LTV Ratio
12.0x
How efficiently acquisition generates value.
CAC vs LTV
CAC
$100
LTV
$1,200
Health summary
Excellent customer economics and growth efficiency.
What if you reduced CAC?
0%
0%50%
Learn the fundamentals
A quick founder-friendly primer on the concepts behind this calculator.
What is LTV?
Lifetime Value (LTV) estimates how much revenue a customer generates throughout their relationship with a business.
Why Does CAC:LTV Matter?
The CAC:LTV ratio helps founders evaluate whether customer acquisition is sustainable. A higher ratio generally indicates stronger unit economics and more efficient growth.
What's a Healthy Ratio?
A ratio above 3x is generally considered sustainable; above 5x is strong; above 10x signals exceptional unit economics. Below 1x means the business loses money on every customer acquired.
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