LTV:CAC Ratio Benchmark
Lifetime-value to acquisition-cost ratios by business model.
Disclaimer: This tool is for general informational and estimation purposes only and is not professional financial, tax, accounting or legal advice. All figures are estimates — verify with a qualified professional before making decisions. Read the full disclaimer.
Checking whether your growth is profitable? Compare your LTV:CAC ratio against the benchmark for your business model — 3:1 or better is the goal.
About LTV:CAC Ratio Benchmark
The LTV:CAC ratio is the classic test of whether your growth is profitable. This benchmark shows typical ratios by business model so you can see whether you're investing efficiently or buying unprofitable growth.
How to use LTV:CAC Ratio Benchmark
- 1Choose the business model that match your situation.
- 2Read the 25th, median, 75th and 90th percentile bands for that selection.
- 3Enter your own figure to see exactly which percentile you fall in.
- 4Add a data point to sharpen the LTV:CAC benchmark for everyone — it stays in your browser.
Why use LTV:CAC Ratio Benchmark?
- ✓Free, instant LTV:CAC percentiles — no sign-up, no paywall.
- ✓Filter by several dimensions to find numbers that actually match your situation.
- ✓Enter your own figure and see exactly where it lands in the distribution.
- ✓Community-contributed data points keep the bands fresh and realistic.
Frequently asked questions
What is a good LTV:CAC ratio?+
3:1 or better is the widely cited rule of thumb. Much lower means acquisition is too expensive; much higher can mean you're under-investing in growth.
How is LTV:CAC calculated?+
Divide customer lifetime value (gross-margin-based) by customer acquisition cost. The ratio shows how much value each acquisition dollar returns.
Is the LTV:CAC benchmark free to use?+
Yes. It is completely free, runs in your browser and needs no sign-up. Any data point you add stays on your device — nothing is uploaded.
Embed LTV:CAC Ratio Benchmark on your website
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