LTV to CAC Ratio Calculator

Use one entity, currency, reporting interval, recurring-revenue definition, customer identity rule, and acquisition policy across every input. Monthly churn is positive, constant, and measured on a matching revenue basis. ARPA, margin, and CAC describe a comparable cohort. Reconcile each value to the same operating records. A mathematically correct result can still be misleading when cohorts, periods, contract types, expense boundaries, or foreign-exchange conventions differ.

The ratio compares one simplified value estimate with acquisition cost; it does not predict realized customer cash flows or returns. Track the metric across consistently prepared periods and explain material definition changes. Pricing, acquisitions, contract timing, annual prepayments, currency, customer consolidation, consumption revenue, one-time services, and accounting presentation can move a result without representing the same operating change.

No. This educational calculator applies disclosed arithmetic to supplied values; it is not GAAP revenue, an audit, forecast, valuation, fundraising recommendation, or investment decision. Expansion, contraction, retention curves, discount rates, servicing changes, timing, segmentation, and survival-model choice can dominate LTV. Keep the source records and metric definition, reconcile changes, test alternative conventions, and obtain qualified review before using the result in a material decision.