KPI guide

What is LTV to CAC ratio? Definition, formula & how to track it

LTV to CAC ratio explained: what it means, how to calculate it, why it matters, and how to track it automatically with a governed AI analyst.

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LTV to CAC ratio

Understanding LTV to CAC ratio

LTV to CAC ratio is a key business metric. Here’s how to define and use it.

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What it is

LTV to CAC ratio measures a core part of business performance and is tracked over time.

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How to calculate

Define LTV to CAC ratio once in a governed layer so the formula is consistent everywhere.

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Track it automatically

Analytify computes LTV to CAC ratio live and explains changes in plain English.

FAQ

Frequently asked questions

What is LTV to CAC ratio?+
LTV to CAC ratio is a key performance indicator that measures an important aspect of business performance. Analytify tracks it with a single governed definition so every team sees the same number.
How do I calculate LTV to CAC ratio?+
Define LTV to CAC ratio once in Analytify’s governed semantic layer; from then on it’s computed consistently across every dashboard and answer.
How do I track LTV to CAC ratio automatically?+
Connect your data to Analytify and it tracks LTV to CAC ratio live, letting you ask plain-English follow-ups about why it changed.
Why does LTV to CAC ratio matter?+
LTV to CAC ratio is a signal of business health; watching it over time helps teams catch problems and opportunities early.
Is there a free version?+
Yes — the open-source Community Edition is free forever for self-hosted use.

Track LTV to CAC ratio on your data

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