CAC/LTV Ratio Calculator
Measure whether acquisition is sustainable, how quickly you recover CAC, and whether conversion, retention, or pricing is the better lever to improve unit economics.
Calculate Your Unit Economics
Use simple mode if you already know CAC and LTV. Use advanced mode if you need to derive both from churn, margin, spend, and customer volume.
Total cost to acquire one customer
Total revenue from a customer over their lifetime
What a healthy CAC:LTV ratio actually means
A healthy ratio is not just a finance metric. It is a signal that the business can acquire customers, keep them long enough, and recover acquisition cost without starving the company of cash.
When to focus on conversion first
If CAC is inflated because the funnel leaks before the sale, better conversion often improves the ratio faster than trying to buy cheaper traffic.
When to focus on churn first
If customers leave quickly after acquisition, the ratio may look weak even when top-of-funnel performance is acceptable. In that case, onboarding, activation, retention, and pricing matter more than more campaign spend.
Need Help Optimizing Your Unit Economics?
If the ratio is weak, the fastest way to improve it is usually a combination of better conversion, lower churn, and tighter prioritization.
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