This LTV/CAC Ratio Template will help calculate both the LTV and CAC of a company’s user base. These will then be used to obtain the LTV/CAC ratio. LTV stands for “LifeTime Value” per customer and CAC stands for “Customer Acquisition Cost.” The LTV/CAC ratio is a good metric to see how much value each customer generates for the company.
Here is a snippet of the template:
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What is the LTV/CAC Ratio Formula?
Below is the lifetime value to customer acquisition cost formula:
[(revenue per customer – direct expenses per customer) / (1 – customer retention rate)] / (# of customers acquired / direct marketing spending)
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