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The Madison Avenue Field GuideA field guide to marketing & advertising, by Brandon Mina

GlossaryMeasurement & AttributionLTV:CAC Ratio

Measurement & Attribution

LTV:CAC Ratio

Customer lifetime value divided by acquisition cost; a core efficiency benchmark.

By Brandon MinaCEO, BrandPilot AIUpdated November 2026

Short answer

The LTV:CAC ratio is customer lifetime value divided by customer acquisition cost, a core benchmark of marketing and business efficiency. It shows how much value a customer generates relative to what it cost to win them. A low ratio signals unprofitable growth, while a very high one may indicate underinvestment in acquisition.