LTV:CAC: customer value to acquisition cost

LTV:CAC compares a customer’s contribution value over a defined horizon with the cost of acquiring that customer over the same horizon. It is a ratio, not a universal target.

Formula

LTV:CAC = LTV (contribution) ÷ CAC

The numerator and denominator must use the same horizon and the same customer group.

LTV — customer contribution profit over the horizon (₽)
CAC — customer acquisition cost over the same horizon (₽)

Worked example

LTV (contribution): 12 000 ₽
CAC: 3 000 ₽

LTV:CAC = 12,000 ₽ ÷ 3,000 ₽

Result: 4×.

How to interpret it

The ratio shows the gap between contribution value and acquisition cost, but it does not replace a cash-flow calculation.
The same 3× can be sustainable for one business model and unprofitable for another because timing and fixed costs differ.

Common mistakes

Using revenue-based LTV, which overstates the ratio.
Treating one LTV:CAC ratio as a universal benchmark across products.
Ignoring the payback period.

Calculate with your own data

Open “LTV:CAC ratio” with an example

The calculation runs in your browser; the example link restores its values in the calculator. Our calculation methodology documents formula versions, units and rounding.

Editorial team: MARKMA Editorial Team. Reviewed: 2026-09-25.