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Input Your Numbers Below to Start

Revenue the customer pays in a period - gross margin + Estimated churn percentage for that customer
Program and advertising spend + salaries + commissions and bonuses + overhead in a month, quarter or year

Customer Lifetime Value to Customer Acquisition Cost

Customer Lifetime Value (CLV) to Customer Acquisition Cost (CAC) is a way for companies to estimate the total value they derive from each customer, compared to what they spend to acquire those customers.

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Why CLV to CAC Matters

The higher the LTV:CAC, the more ROI your sales and marketing team is delivering to your bottom line. However, you don’t want this ratio to be too high, as you should always be investing in reaching new customers. Spendng more on sales and marketing will reduce your LTV:CAC ratio, but could help speed up your total company growth.