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LTV:CAC Ratio Calculator

Free Calculator

Turn customer lifetime value and acquisition cost into your LTV:CAC ratio and net value per customer β€” instantly and privately.

100% private

Runs in your browser β€” no numbers leave your device.

Your numbers

$

Total gross profit you expect from one customer over their lifetime.

$

Sales & marketing spend divided by new customers acquired.

LTV : CAC ratio

4 : 1

3:1 or higher is the healthy SaaS benchmark; below 1:1 you lose money on every customer.

Net value per customer

$270

LTV minus CAC β€” the profit left after you have paid to acquire the customer.

How it works

1

Enter LTV

Add the gross profit one customer generates over their lifetime.

2

Enter CAC

Add your fully-loaded cost to acquire a single new customer.

3

Read the ratio

Your LTV:CAC ratio updates live as a clean X : 1 figure.

4

Act on it

Compare against 3:1, then push LTV up or CAC down to improve it.

Lower CAC with better creative

Reverze rebuilds your App Store screenshots into higher-converting creative, so every ad dollar wins more installs and your CAC drops.

What is a good LTV:CAC ratio?

Your LTV:CAC ratio compares how much a customer is worth over their lifetime (LTV) to how much it costs to acquire them (CAC). It is the single clearest read on whether your growth is profitable: a ratio of 3:1 means each customer returns three times what you paid to win them. This calculator divides LTV by CAC to give you that ratio, plus the net value each customer leaves after acquisition, so you can see the health of your unit economics at a glance.

The widely-cited SaaS benchmark is 3:1 β€” high enough to be profitable, low enough that you are not underinvesting in growth. Below 1:1 you lose money on every customer; above 5:1 you may be leaving growth on the table by spending too little. Payback period matters too: even a strong ratio hurts cash flow if CAC takes many months to recover. One of the fastest ways to shift the ratio is to lower CAC β€” and higher-converting App Store screenshots turn the same ad spend into more installs, which is exactly what Reverze rebuilds.

Frequently asked questions

How do I calculate the LTV:CAC ratio?
Divide customer lifetime value by customer acquisition cost. For example, $360 LTV Γ· $90 CAC = a 4:1 ratio. This calculator does it instantly and also shows the net value left per customer after acquisition.
What is a good LTV:CAC ratio?
3:1 is the classic healthy benchmark: profitable without underspending on growth. Below 1:1 you lose money on each customer; much above 5:1 often means you are underinvesting in acquisition and could grow faster.
What is the difference between LTV:CAC ratio and payback period?
The ratio tells you whether a customer is profitable overall; payback period tells you how many months it takes to earn CAC back. A 4:1 ratio can still strain cash flow if payback stretches past a year, so read both together.
How can I improve my LTV:CAC ratio?
Raise LTV (retention, expansion, pricing) or lower CAC (better targeting and higher ad conversion). Improving App Store screenshot conversion is a quick CAC lever β€” more installs from the same spend β€” which is what Reverze helps you do.