← Back to Glossary

CAC-LTV Ratio

The CAC-LTV Ratio calculates the relation between the price paid to acquire a client and its lifetime value.The ideal CAC-LTV ratio is 3:1, meaning that you should make back three times what you spent on recruiting new clients. If your CAC-LTV is less than 3, you'll need to make an effort to cut your marketing expenses.

Related Content

No items found.

You’ve never seen an FP&A solution do this

Take a product tour