LTV:CAC
The ratio of a customer's lifetime value to the cost of acquiring them; a summary of how profitable acquisition is.
Core MetricsTerm 33 / 81
Formula
LTV:CAC = LTV ÷ CAC
In practice
A commonly cited rule of thumb is 3:1, but treat it as a starting point rather than a hard threshold. A very high ratio is a signal too: you may be underinvesting in growth.