LTV:CAC Ratio Calculator
Evaluate customer acquisition profitability by calculating the LTV:CAC ratio and payback period.
Enter your data to calculate the ratio.
Average customer lifetime value.
Average customer acquisition cost.
Average revenue generated per customer each month.
A ratio of 3:1 or higher is considered healthy.
Number of months to recover acquisition cost.
Customer lifetime value entered.
Acquisition cost entered.
Your LTV:CAC ratio is healthy. Every euro invested in acquisition generates significantly more customer value.
What is the LTV:CAC ratio?
The LTV:CAC ratio compares customer lifetime value to acquisition cost. It indicates how much value each euro invested in acquisition generates over the customer's lifetime.
You are losing money on every acquired customer. Acquisition cost exceeds generated value. Stop ad spend and fix the model.
Your acquisition is fragile. A rise in ad costs or a drop in retention can make the business unprofitable. Optimize as a priority.
Ideal zone. Every euro invested in acquisition generates 3 to 5 euros of customer value. You can scale confidently.
Very profitable, but potentially underinvested. You could increase ad spend to accelerate growth.
Average LTV:CAC ratio by industry (2026)
Median customer lifetime value to acquisition cost ratio by vertical. Higher ratios reflect high-retention sectors (consumables), lower ratios one-off purchases (tech).
Aggregated and anonymized data from 3000+ Fullmetrix stores. Computed on 24-month net LTV and blended CAC. Updated quarterly.
Frequently asked questions
How to calculate the LTV:CAC ratio?+
Ratio = LTV / CAC. If your LTV is 150 EUR and your CAC is 50 EUR, your ratio is 3:1.
What is a good LTV:CAC ratio?+
A ratio of 3:1 is considered healthy for e-commerce. Below 3:1, acquisition is fragile. Above 5:1, you are probably underinvesting.
What is payback period?+
It is the number of months needed to recover a customer's acquisition cost. Payback = CAC / monthly revenue per customer.
How to improve the LTV:CAC ratio?+
Two levers: increase LTV (loyalty programs, cross-sell, retention) or reduce CAC (campaign optimization, targeting, organic growth).
Should I use gross or net LTV?+
Net LTV (after deducting costs) is more accurate. Gross LTV overestimates the real customer value.
Does Fullmetrix calculate the ratio automatically?+
Yes. Fullmetrix calculates net LTV per cohort and CAC per channel for an accurate and actionable ratio.
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Calculate your LTV:CAC automatically
Fullmetrix calculates net LTV, CAC per channel and the ratio in real time.
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