Customer lifetime value divided by acquisition cost.
The unit-economics verdict in one number: 3:1 or better is the standard healthy benchmark; below 1:1 you pay for the privilege of losing money per customer.
Example: $2,000 LTV ÷ $450 CAC = 4.4:1.
FAQ
What is LTV:CAC Ratio in simple terms?
The unit-economics verdict in one number: 3:1 or better is the standard healthy benchmark; below 1:1 you pay for the privilege of losing money per customer.