LTV : CAC Ratio

Definition

Lifetime value created per dollar of acquisition cost — the verdict metric on growth profitability.

Formula

LTV:CAC = CLTV / CAC

Worked Example

CLTV $1,260, CAC $150:

LTV:CAC = 8.4 : 1

  < 1    every customer destroys value — stop
  1-3    marginal; growth burns cash
  ~3     classic healthy benchmark
  > 5    excellent — possibly UNDER-investing in growth

Interpretation & Pitfalls

A high ratio with a long payback can still kill you — always read it together with CAC payback (the cash view).

In TupicFinance

Both inputs are live: CAC from campaign costs, CLTV from retention and margin data.