LTV to CAC

LTV to CAC compares Customer Lifetime Value to Customer Acquisition Cost. The report displays the relationship between the revenue generated by customers over time and the cost required to acquire them.

In Rillet, LTV to CAC is calculated and displayed by reporting period.

What This Report Shows

The LTV to CAC report displays values by reporting period within the selected date range.

The table includes the following columns:

• Period The reporting month included in the selected range.

• Lifetime Value The calculated Customer Lifetime Value for the period.

• Customer Acquisition Cost The calculated Customer Acquisition Cost for the period.

• LTV to CAC The ratio between Lifetime Value and Customer Acquisition Cost.

Each row represents a reporting period. If Lifetime Value or Customer Acquisition Cost equals zero or is unavailable for a period, the LTV to CAC value may appear blank.

The period selector at the top of the report determines which reporting periods are displayed.

How LTV to CAC Is Calculated

LTV to CAC compares the estimated lifetime revenue generated by a customer with the cost required to acquire that customer.

The calculation follows this formula:

$$\text{LTV to CAC} = \frac{\text{Lifetime Value (LTV)}}{\text{Customer Acquisition Cost (CAC)}}$$

The system defines each value as follows:

• Lifetime Value (LTV) The estimated recurring revenue generated per customer over their lifetime. In Rillet, LTV is calculated using the configured Lifetime Value formula.

• Customer Acquisition Cost (CAC) The total cost associated with acquiring new customers during the period, based on the configured CAC calculation.

See Also

For additional insights into unit economics and customer profitability, refer to the following reports:

• Customer Acquisition Cost (CAC)

• Net Revenue Retention (NRR)

• Recurring Revenue (ARR/MRR)

• Burn Multiple