top of page

CAC:LTV Ratio

The ratio of the cost of acquiring a customer to the lifetime value of a customer.

If Acme's CAC is $100 and LTV is $300: CAC:LTV Ratio = $100 / $300 = 0.33. Acme aims for a lower ratio for better ROI.

Divide the Customer Acquisition Cost (CAC) by the Customer Lifetime Value (LTV).

bottom of page

Subscribe to our newsletter, The Business of Product. Don’t miss out!