LTV CAC Ratio Template
Originally published: 19/02/2019 14:30
Publication number: ELQ-70757-1
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LTV CAC Ratio Template

This is a template which will help the user to calculate both the LTV and CAC for the user base of a company.

This is a LTV, or 'Lifetime value', CAC, or 'customer acquisition cost', ratio template that is ready-to-use, and instantly downloadable for the user.

This model is a valuable tool for those wanting to relate the lifetime value that a customer brings with the cost to the business of attracting and acquiring that customer.

In general, having a LTV CAC ratio below 1.0 signals that the customer is not creating value for the company, whereas anything above 3.0 is likely to be positive for the value of the organisation.

It is worth noting that this template should be updated frequently customer acquisition costs are constantly changing, with churn equally as changing.

Particularly suited to an e-commerce business, this model contains the following metrics:

- Revenue over a number of years
- Net Revenue, Gross Profit, Gross Margin
- Contribution Margin
- EBITDA Margin
- Customers
- Revenue per customers
- Marketing Spend
- Customer Acquisition Cost
- Life Time Value
- Burn Rate
- Cash Balance

There may be certain challenges that you encounter when using a LTV CAC Ratio model, if you do have any questions or problems, do not hesitate to private message through our author channel.

For a range of our other models, including DCF Valuation model templates and Operating Budget Excel Templates, visit our Eloquens author channel.

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