LTV:CAC is the ratio of the total profit earned from a customer to the cost of acquiring that customer. 3:1 and above is considered healthy, below 1:1 unsustainable. This ratio is the clearest indicator of whether you can push more budget into advertising.
A very high ratio — 8:1, say — usually means you are not being aggressive enough and are leaving growth on the table. Around 3:1 is the band where growth and profitability balance. There are two ways to improve it: lower CAC (targeting, creative, conversion rate) or raise LTV (repeat purchase, average order value, subscription).
LTV:CAC = LTV ÷ CAC
480 TL LTV against 150 TL CAC → 3.2:1. Healthy band.
A very high ratio — 8:1, say — usually means you are not being aggressive enough and are leaving growth on the table. Around 3:1 is the band where growth and profitability balance. There are two ways to improve it: lower CAC (targeting, creative, conversion rate) or raise LTV (repeat purchase, average order value, subs…
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