LTV:CAC Ratio Calculator
Unit Economics Master Metric

LTV:CAC Ratio Calculator

Calculate the lifetime value to customer acquisition cost ratio and optimize your unit economics for profitable growth

Calculate Your LTV:CAC Ratio
5.0
LTV:CAC Ratio
LTV = (ARPA ร— Gross Margin%) รท Churn Rate
LTV = $12,500
$500
Average Revenue Per Account
75%
Gross Margin
3%
Monthly Churn Rate
Stage-Based Investor Expectations
Pre-Seed
1:1
Prove concept
Seed
2:1
Prove repeatable
Series A
3:1
Prove scalable
Series B+
4:1
Prove efficient
Public
5:1
World-class
Churn Sensitivity Analysis

See how small changes in churn rate dramatically impact your LTV. This is often your highest-leverage optimization opportunity.

Key Insight: Reducing churn from 3% to 2% increases LTV by 50% ($12,500 โ†’ $18,750). Small churn improvements = massive LTV gains!

Scenario Modeler - Compare Your Options

Model different strategies to reach your target ratio. Which lever should you pull first?

๐ŸŽฏ Current State
Your baseline
5.0:1
LTV:CAC Ratio
๐Ÿ“ˆ Reduce CAC 30%
Optimize acquisition
7.1:1
LTV:CAC Ratio
๐Ÿ›ก๏ธ Reduce Churn to 2%
Focus on retention
7.5:1
LTV:CAC Ratio

Recommended Strategy

Reducing churn to 2% gives you the best ratio (7.5:1). Focus on customer success and product improvements before optimizing CAC. Small retention improvements = massive value gains!