Profitability Calculator
Calculate Your Businesses' LTV:CAC Ratio

Why Your LTV:CAC Matters

The LTV:CAC ratio is one of the most important numbers in your business. It tells you whether your marketing and sales efforts are actually profitable or just keeping you stuck.

Take 2 minutes to run your numbers now and get a clear plan to improve your business.

Customer Lifetime Value (LTV) vs. Customer Acquisition Cost (CAC)

How It Works:

• LTV (Customer Lifetime Value): The total revenue you earn from a customer over time.
• CAC (Customer Acquisition Cost): How much you spend on marketing, operating, and sales to acquire that customer.
• LTV:CAC Ratio: A higher ratio means you’re generating profit efficiently. A lower ratio means you’re overspending to acquire customers.

How to Use the LTV:CAC Calculator

Step 1: Enter Your Numbers Above

• Input your total customers, revenue, marketing spend, operating expenses, and other key details. Our calculator will crunch the numbers for you. Not quite sure what to put in each? Here's a breakdown! 
  • Total Customers - The total number of customers in the year
  • Total Spend - The sum of all business expenses. See our expenses tool below for additional help! 
  • Total Revenue - Your total business revenue for the year
  • Total Orders - The total number of orders in the year
  • Purchase Frequency - The average number of times someone purchased from your business in the year
  • Customer Lifespan - The average number of years customers purchase from your business

Step 2: Get Instant Results

Your LTV:CAC ratio will show whether your business is losing money, breaking even, or primed for scalable growth.

Your LTV:CAC Score & What It Means

After you enter your data, you'll receive an instant color-coded score:

• Below 1.0 – Losing Money: You’re spending more to acquire customers than they’re worth. Focus on reducing acquisition costs and increasing retention.
• 1.0 - 3.0 – Break Even or Slightly Profitable: You’re covering costs, but growth is slow. Optimizing costs and increasing customer lifetime value will help growth.
• 3.0 - 5.0 – Profitable & Sustainable: Your business is in a strong position with room for optimization. There may still be opportunities to increase efficiency and profitability.
• 5.0+ – High Growth Potential: You’re generating strong profits for every dollar spent on acquisition. Look for ways to further maximize customer lifetime value.

Step 3: Get Your Full Breakdown via Email

Want to improve your ratio and scale profitably? Enter your email below, and we’ll send you:

• Your LTV:CAC Score Interpretation Plan – Tailored next steps based on your score
• Proven Strategies to Improve Profitability – How to lower CAC, increase LTV, and optimize marketing spend
• Industry Benchmarks – See how you stack up against others in your space

[Enter Your Email Here] (CTA Button: "Get My Plan")

What’s a Good LTV:CAC Ratio?

For most businesses, an absolute minimum of a 3:1 ratio is ideal. This means for every $1 spent on acquiring customers, you’re making $3 back in revenue.

• If your ratio is too low → You’re spending too much to acquire customers, and your profits are suffering.
• If your ratio is too high → You might be missing out on opportunities to scale your business faster.

How to Improve Your LTV:CAC Ratio

No matter where you fall on the scale, there are clear ways to optimize. Review your Custom Profitability Plan in your email for specific next steps for your business.

Test Different Scenarios & Optimize

Not happy with your results? Download your Custom Profitability Plan then play around with different calculator inputs to see what happens if you:

• Increase customer retention
• Lower acquisition costs
• Raise average order value

This helps you find the best strategy before making major business decisions.