LTV:CAC Ratio
The cornerstone of unit economics health
From Revenue Architecture
LTV:CAC Ratio = Customer Lifetime Value ÷ Customer Acquisition Cost
This is THE fundamental unit economics metric. According to Revenue Architecture, a healthy ratio is at least 3:1 (you get back 3x what you spend to acquire customers). Below 3:1 means you're spending too much or not retaining enough value. Above 5:1 means you could invest more in growth.
Input Parameters
Results
Your LTV:CAC Ratio
0
:1
Health Status
LTV
$0
CAC
$0
Interpretation
Enter your values to see the interpretation
Industry Benchmarks
< 1:1
Critical
1:1 - 3:1
Below Target
3:1 - 5:1
Healthy
> 5:1
Excellent
Strategic Actions
- • Calculate your metrics to see recommendations
Fill in your LTV and CAC to calculate the ratio