LTV : CAC Ratio Calculator
Is your business sustainable? Get your LTV:CAC ratio and see where you sit vs the 3:1 D2C benchmark.
About this tool
Investors and operators use the LTV:CAC ratio as the single best signal of D2C health. Below 1:1 you're losing money on every customer. Between 1 and 3 you're sub-scale. Above 3:1 you're growing efficiently. This tool plots you on the spectrum and shows the levers to move.
The 3:1 benchmark, explained
The classic LTV:CAC target is 3:1 because below 3 the maths usually breaks down once you layer in fixed overhead, returns, and the fact CAC tends to inflate as you scale. Above 5 is usually a sign you should reinvest more aggressively in acquisition — you're leaving growth on the table.
When the ratio lies
LTV:CAC says nothing about cash flow. A 3:1 ratio with a 24-month payback period can still starve a bootstrapped brand of capital. Always pair this metric with the CAC Payback Period.
More free tools
See all tools →Calculate average purchases per customer per year, the missing piece between AOV and LTV.
Calculate variable costs as % of revenue, the metric that determines scalability and operating leverage.
Calculate true CAC payback factoring real retention curves, not the optimistic 'all customers stay' assumption.
Calculate Contribution Margin 3, CM2 minus marketing/CAC. The true per-order profit after acquiring the customer.
Why wait? Try it free today.
Stop managing feeds manually. Start optimising with AI in 30 seconds.
- 100% free forever, no credit card required
- 1 brand, 1 feed, 100,000 products per feed
- Full AI Product Optimisation, Rule Engine, and 200+ channel exports
- Pay only for AI credits when you need them