What's a good LTV:CAC ratio?
3:1 is the minimum target. 3-5:1 is good, >5:1 is excellent. Below 3:1 means you're spending too much to acquire customers or not retaining them long enough.
This page helps connect spend, customer volume, and unit economics so acquisition efficiency can be reviewed with more discipline.
Use it for marketing planning, SaaS growth analysis, campaign reviews, and budgeting conversations around paid acquisition channels.
CAC becomes much more meaningful when read beside retention, payback period, and lifetime value, because low acquisition cost alone does not guarantee profitable growth.
Enter values to see detailed analysis and insights.
CAC = (Marketing Spend + Sales Spend) ÷ New Customers
LTV = Average Order Value × Purchase Frequency × Customer Lifespan
LTV:CAC Ratio = LTV ÷ CACCACCost to acquire one customerLTVLifetime value of a customerLTV:CAC RatioValue created per dollar spentPayback PeriodMonths to recover CAC