LTV:CAC ratio calculator
See how much a customer is worth versus what they cost, and how fast you get paid back.
Enter your numbers to see the result.
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Your LTV:CAC ratio is customer lifetime gross profit divided by customer acquisition cost. A widely-used rule of thumb is that a healthy subscription or D2C business runs around 3:1 or better — a customer is worth about three times what it costs to acquire them — while 1:1 means you are buying revenue at a loss once costs are counted. Lifetime value here is gross profit, not revenue: average order value times gross margin times the number of orders a customer makes. Payback is how many orders it takes to recover the acquisition cost. Enter your numbers to see both.
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