What is a good CLV:CAC ratio?

3:1 is the benchmark — every $1 in acquisition returns $3 in lifetime value. Below 1:1 means you're losing money on each customer.

How do I increase CLV?

Increase purchase frequency (loyalty programs), increase average order value (upsells), or extend customer lifespan (retention programs).

What inputs should I use?

Use actual data from your business. Average purchase value from sales records, frequency from transaction data, lifespan from churn rate (1 / churn rate = lifespan in periods).

Business Tool

Customer Lifetime Value Calculator

Calculate CLV/LTV and CLV:CAC ratio to understand customer profitability. Essential for marketing budget allocation and growth planning.

100% free — no account needed

Currency

Average Purchase Value *

Purchase Frequency (per year) *

purchases per year

Customer Lifespan (years) *

years

Customer Acquisition Cost (CAC)

Know Your Customer Value

Data-driven customer profitability analysis

CLV Calculation

Average purchase × frequency × lifespan = Customer Lifetime Value.

CAC Comparison

Compare CLV to Customer Acquisition Cost for profitability analysis.

CLV:CAC Ratio

The golden metric — excellent (3:1+), good (2-3:1), breakeven (1-2:1), losing (<1:1).

Profit Per Customer

See the actual dollar profit each customer generates over their lifetime.

FAQ

Business Tools

Grow Customer Value

Retain customers with consistent content and engagement.