How to Calculate CAC Ratio
What is CAC Ratio?
CAC Ratio Calculator helps you measure the effectiveness and profitability of your marketing investments.
Formula
CAC Ratio = LTV / CAC
Step-by-Step Guide
- 1Divide customer lifetime value by acquisition cost
- 2Calculate the result using the formula
- 3Compare against benchmarks to evaluate performance
Worked Examples
Input
LTV $1500, CAC $300
Result
CAC Ratio = 1500/300 = 5× (healthy: >3)
Common Mistakes to Avoid
- ✕Not accounting for all costs in the calculation
- ✕Ignoring attribution window when measuring results
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