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LTV:CAC ratio calculator
Compare the lifetime value of a customer to what it costs to acquire one — the single clearest read on whether growth pays for itself.
$
%
$4,800 gross profit / customer / yr
%
Share of customers who leave each year.
6.7 yr average lifetime
$
LTV : CAC
8.0×
- Lifetime value$32,000
- CAC payback10 mo
- Avg customer lifetime6.7 yrs
Excellent — room to grow faster
Great economics. A ratio this high can even mean you could afford to spend more on acquisition and grow quicker.
Benchmark 3×+ ratio, and recover CAC in under ~12 months
Why it matters
A ratio above 3× signals unit economics that can support aggressive growth. Below 1× means each customer costs more than they're worth — no amount of growth fixes that, it just loses money faster.
Stop recalculating by hand
Radley Finance keeps this metric — and every other — live from one model, with the same benchmarks built in. Investor-ready in under an hour.
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