LTV:CAC Calculator
Do you make back more than it costs to win a customer? Get your lifetime value, LTV:CAC ratio, payback period, and an honest verdict on the 3:1 rule. Free, no signup, no AI.
What is a good LTV:CAC ratio?
LTV is the lifetime value of a customer: how much gross profit they bring over the time they stay. CAC is what you spend to acquire one. The ratio between them tells you whether growth makes you money or burns it. The widely cited benchmark is 3:1. Below that, there is little room for error. Below 1:1, you lose money on every customer you win, and spending more on marketing only digs the hole faster.
Two levers move the ratio most: retention (lower churn means a longer lifetime and a bigger LTV) and acquisition cost. Payback period matters too. The faster you earn CAC back, the less cash you tie up funding growth.
Healthy economics still assume the idea is worth building. Validate the idea itself with Olune against live Reddit signals, competitor data, and real search demand.
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Key terms
Plain-English definitions, formulas, and worked examples in the Olune startup glossary.
See the full startup glossary →