LTV:CAC Ratio Calculator
Measure the relationship between customer lifetime value and customer acquisition cost to understand your unit economics.
LTV : CAC Ratio
0 : 1
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LTV compared with CAC
0%
LTV:
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CAC:
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Customer Lifetime Value
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Customer Acquisition Cost
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Gross Profit LTV
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Customer Lifetime
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Unit Economics
Revenue generated per customer
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Gross profit generated per customer
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Acquisition cost
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Gross profit after CAC
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Formula
Customer Lifetime = 1 ÷ Monthly Churn Rate
LTV = Monthly Revenue per Customer × Customer Lifetime × Gross Margin
CAC = Total Acquisition Spend ÷ New Customers Acquired
LTV:CAC = LTV ÷ CAC
Note:
The LTV:CAC ratio is a simplified unit-economics measure. Actual
customer lifetime value can vary because of retention changes,
expansion revenue, downgrades, discounts, refunds, and customer
behavior.