LTV CAC Ratio Template

LTV/CAC Ratio Template

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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