Ecommerce KPI Tool

LTV:CAC Ratio Calculator

Check if customer value is strong enough to support acquisition spend.

Formula: LTV:CAC Ratio = Customer LTV / Customer Acquisition Cost

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Decision snapshot

LTV:CAC Ratio Calculator

Check if customer value is strong enough to support acquisition spend.

Formula

LTV:CAC Ratio = Customer LTV / Customer Acquisition Cost

LTV:CAC ratio

4.57x

CAC share of LTV

21.88%

Activity profile

A simple visual cue for the current decision path.

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Inputs

Enter your current operating numbers to get a quick decision-ready snapshot.

Scenario workspace

Save scenarios and compare outcomes. Local autosave stays on by default for quick planning.

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ScenarioPlanLTV:CAC ratioCAC share of LTV
Current sessionFree4.57x21.88%

When to use this tool

  • Before opening a new acquisition channel with uncertain economics.
  • When CAC is rising and you need a quick profitability stress test.
  • During planning cycles to set realistic CAC guardrails.

FAQ

What LTV:CAC ratio is usually healthy?

Many ecommerce teams target around 3.0x as a baseline, but acceptable ranges depend on margin and cash flow constraints.

Can a high ratio still be risky?

Yes. If payback is slow, growth can still create cash pressure even with a strong lifetime ratio.

Should ratio targets vary by channel?

Yes. Branded search often supports stronger ratios than colder social traffic, so channel-specific targets are useful.

Related tools

Continue your workflow with the next useful tool.

These links stay within the same decision path so you can move to the next calculation without starting over.

How these links are chosen

We only link to closely related pages so each next step supports the same decision.

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