beprofit logo
ProductExpand more icon
Reporting Tools
Analytics Suite
Data Management
profit calc image
Profit Simulators
Tweak your numbers to lift profits up
Shop
MarketingPricing
Product
action card image

Demo Store

Want to see our
dashboard in action?
Explore the dashboard
Watch Demo Store
ResourcesExpand more icon
CompanyExpand more icon
Pricing
Start Trial
Want to see our dashboard in action?
you can try it here with theDemo Store!

What does the LTV:CAC ratio indicate?

Asked 4 years ago

What does LTV to CAC tell us, what would be a good ratio, and how do we calculate it?

Ltv cac ratioCustomer lifetime valueCost of acquisitionCac
+1

Gareth Browne

Friday, November 12, 2021

LTV means Life Time Value, CAC means Customer Acquisition Cost. The ratio compares the value of a customer over their lifetime compared to the cost of acquiring them.

The formula for this is as follows:

LTV/CAC ratio is the (LTV) divided by the (CAC).

Write an answer...

Cancel

Please follow our  Community Guidelines

Related Articles

8 Ways To Increase Organic Traffic To Your Online Store

8 Ways To Increase Organic Traffic To Your Online Store

BeProfit Staff

January 26, 2022

Average Cost Per Order (CPO): Definition, Formula & Example

Average Cost Per Order (CPO): Definition, Formula & Example

Marcel Deer

May 13, 2023

Q&A with Ben Yahalom: Profit Tracking, and E-commerce Profitable Growth

Q&A with Ben Yahalom: Profit Tracking, and E-commerce Profitable Growth

BeProfit

March 7, 2024

Related Posts

Can't find what you're looking for?