Calculate your customer acquisition cost and your LTV:CAC ratio.
Results
CAC (cost per customer)
$250
LTV : CAC ratio
4.8x
Verdict
Healthy (≥ 3:1)
An LTV:CAC ratio ≥ 3:1 signals healthy marketing. Want us to lower your CAC?
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CAC (Customer Acquisition Cost) is how much, on average, it costs you to win a new customer. On its own it says little — what matters is comparing it to customer lifetime value (LTV).
The rule of thumb is an LTV:CAC ratio of at least 3:1. Below that, your growth is not sustainable.
CAC = total sales and marketing spend in a period / number of new customers acquired in that same period.
A common benchmark is 3:1 or higher. Below 1:1 you lose money per customer; far above 5:1 may mean you are underinvesting in growth.
One flat plan $1,499 USD/mo with SEO, GEO and SEM. Month to month, no lock-in.
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