PALLAS / CALCULATOR

LTV:CAC Ratio Calculator

Compare a lifetime value you already trust with customer acquisition cost. This direct-input calculator keeps the ratio separate from the assumptions used to estimate LTV or CAC.

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INPUT

Enter values

LIVE
Optional planning threshold; PBT does not label a universal ratio as good or bad.
Updates as valid inputs change.
Method & formula

LTV:CAC divides customer lifetime value by customer acquisition cost. Because business models define LTV differently, this calculator does not estimate LTV for you; use the separate CLV calculator if you need a transparent LTV model.

  • LTV:CAC = lifetime value / customer acquisition cost
  • CAC share of LTV % = CAC / LTV * 100
  • Maximum CAC at target ratio = LTV / target ratio
Example

An LTV of 600 and CAC of 200 gives an LTV:CAC ratio of 3.0 to 1 and leaves 400 of lifetime value above acquisition cost before other costs not already reflected in LTV.

Sources & standards
FAQ

Why not automatically call 3:1 healthy?

Because acceptable unit economics vary by gross margin, cash flow, payback period, business model, growth stage and how LTV is defined. The calculator reports the arithmetic and lets you set your own target.

Should LTV be gross-margin adjusted?

Use a value definition that matches the decision you are making. If CAC is compared with gross-margin LTV, keep that definition consistent across periods and cohorts.

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Customer Lifetime Value Calculator

customer lifetime value calculator CLV

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