Metrics

LTV:CAC Ratio

The LTV:CAC ratio is the value of a customer divided by the cost to acquire them. The headline efficiency metric of any subscription or e-commerce business.

A 3:1 ratio is the most-cited healthy benchmark. Every €1 of acquisition spend returns €3 of customer value. Under 1:1 means you lose money on every customer; above 5:1 often means you're underinvesting in growth.

The ratio is a function of two levers: spending less to acquire (CAC) or extracting more value over time (LTV). Most teams find LTV easier to move via retention, win-back, and reorder loops.

Calculate yours with the Callsy LTV calculator. Paste AOV, frequency, lifespan, and CAC and get the ratio plus payback period instantly.

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