---
agentTools:
  projectIndex: https://docs.calqulate.io/llms.txt
---

# LTV / CAC Ratio

The ratio of lifetime value to customer acquisition cost helps you to determine how much you should be spending to acquire a customer. Calculating this ratio will show if you’re spending too much per customer or if you’re missing opportunities from not spending enough.

[block:callout]
{
  "type": "info",
  "title": "Formula",
  "body": "LTV / CAC Ratio = LTV / CAC"
}
[/block]