Overview

This is a LTV/CAC (Lifetime value / customer acquisition cost) ratio template that is ready-to-use, and instantly downloadable for the user. This Excel template 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 (CAC)
  • Life time value (LTV)
  • Burn rate
  • Cash balance
  ltv-cac-ratio-template-excel Screenshot from the template.  

This business tool includes 1 LTV CAC Ratio Excel Template

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