Unit Economics
LTV:CAC Ratio Calculator
Whether each customer is worth what you pay to get them. The rule of thumb: earn at least 3× what acquisition costs.
Inputs
- Lifetime value (gross profit) — Total margin one customer brings over the whole relationship.
- Cost to acquire a customer — All sales + marketing spend ÷ new customers won.
How to use this calculator
- Enter a customer's lifetime value (in gross profit) and your cost to acquire one.
- The ratio tells you how many dollars back you get per dollar spent acquiring.
- Aim for 3× or better; under 1× means you lose money on every customer you buy.
What each term means
- LTV:CAC
- Lifetime value divided by acquisition cost: the core efficiency ratio.
- The 3× rule
- A common benchmark: earn at least $3 of LTV per $1 of CAC.
- Gross-profit LTV
- Lifetime value counted in margin, not revenue, so the ratio is honest.
Educational disclaimer: Outputs are simplified educational estimates built from the numbers you enter — they are not financial, legal, tax, or investment advice, and real decisions deserve verified figures and qualified professionals.