Free Growth Metric Tool

LTV : CAC Ratio Calculator

See how much lifetime value each customer generates compared to what it costs to acquire them — instantly.

Figures are treated as your selected currency — amounts are not converted.

CAC — Customer Acquisition Cost

What it costs you to win a customer

Advertising Expenses How much did you spend on paid advertising in the past 12 months? (Facebook ads, Google ads, TikTok ads, etc.)

Sales & Marketing Compensation Total salary or commissions paid to your sales and marketing team in the past 12 months? (Include bonuses, benefits, and commissions)

Other Marketing Expenses What other marketing expenses did you incur in the past 12 months? (e.g., software tools, freelancers, consultants, agencies, sponsorships)

# of Customers How many customers made a purchase in the past 12 months? (Count each customer only once, even if they bought multiple times.)

LTV — Lifetime Value

What a customer is worth to you

Total Revenue What was your total revenue generated in the past 12 months?

Cost of Sales Total cost of sales (COGS) for those customers? (Include product costs, fulfillment, shipping, payment processor fees, etc.)

Your Results

CAC / Customer

LTV / Customer

LTV : CAC Ratio

— : 1

Fill in your numbers to see your ratio.

0135+

You're losing money — let's fix that Let's map your path to 3:1+ Ready to scale further? Let's talk

FAQs

What should I include in my marketing costs?

Your marketing costs should include everything you spend to acquire customers, such as ads, salaries, commissions, software, agencies, and freelancers. If you're handling marketing and sales yourself, ask yourself: how much would you realistically pay someone else to do your job? That amount should be included as an expense. Also remember to account for tools and software (e.g., Facebook Ads, Google Ads, CRM, email marketing tools). If your team works on multiple businesses, only include the portion of their salaries dedicated to this business.

My business is less than 12 months old. What should I do?

If your business is less than a year old, adjust the timeframe to match how long you've been operating. For example, if your business has been running for 6 months, use your total expenses and revenue from the past 6 months instead of 12. This way, your CAC and LTV are based on a relevant timeframe. Similarly, if you want to calculate your ratio for a shorter period (e.g., the last 3 months), just make sure both CAC and LTV are based on the same time range.

What if I don't know my numbers?

If you're unsure about your numbers, start with estimates. For marketing costs, check your bank statements, invoices, or ad platform records (Facebook Ads, Google Ads, TikTok Ads, etc.). For customer data, look at your sales history or best estimate of how many people purchased in the past year. If you don't track cost of sales (COGS), think about how much it costs to fulfill each sale (product cost, delivery, payment processing fees) and use that estimate. It's better to start with a rough estimate than to leave it blank.

How do I know if my LTV to CAC ratio is good?

The higher the ratio, the better your marketing efficiency. Here's a general guideline:

Less than 1: You're losing money! You need to optimize to increase your revenue per customer.
Between 2 to 3: Almost there! You're already making money but still have room for improvement to maximize returns.
More than 3: Excellent! Profitability is healthy. Go and spend more in ads while optimizing to increase the ratio further.