How is LTV:CAC Ratio calculated?

Modified on Sun, Apr 23, 2023 at 10:30 PM

The LTV:CAC Ratio is calculated on a monthly basis using data from your accounting system. This ratio provides directional guidance on the spending efficiency to acquire a new customer. The benchmark ratio is 3:1 or better. A ratio of 5:1 suggests that too little is being spent on customer acquisition. 

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