LTV:CAC RATIO CALCULATOR

In today's competitive business environment, understanding the efficiency of your customer acquisition efforts is crucial for sustainable growth.

One of the most insightful metrics to gauge this efficiency is the LTV:CAC ratio.

This ratio provides a clear picture of the return on investment (ROI) from your customer acquisition activities.

Essentially, it answers the question: "How much value does each dollar spent on acquiring customers generate over their lifetime?"

Why is it important to measure?

1. You will understand the profitability of getting a new customer.
2. If tracked well, you will be able to predict how much you earn for every unit you invest.
3. It ensures that the company's growth is driven by acquiring high-value customers at an optimal cost, leading to sustainable profitability.
4. It provides insights into areas for improvement and helps track the effectiveness of changes in acquisition strategies over time.