What is LTV:CAC Ratio?
Lifetime value divided by acquisition cost. About 3:1 is a common healthy benchmark; below 1:1 loses money; above 5:1 may signal underinvestment in growth.
Where you will use it: this term comes up in the Entrepreneurial Finance course, and the full course glossary collects every term in one place.
Related terms
From the free Entrepreneurial Finance course by Devon Coombs, CPA, MBA.