LTV:CAC ratio
Also: LTV to CAC · LTV/CAC
The LTV:CAC ratio compares the revenue a customer generates over time to the cost of acquiring them. The conventional benchmark of 3:1 comes from SaaS; for mobile apps the more useful framing is payback period at a fixed LTV window.
LTV:CAC = LTV per customer ÷ Customer acquisition cost
The ratio depends entirely on the LTV window. A 3:1 ratio at D365 and a 0.6:1 ratio at D30 can describe the same subscription app; both are true, and only the second one is knowable in time to act on it. State the window every time.
Because LTV here must be per customer (not per paying customer), and CAC must include every install the campaign bought, the ratio is only as honest as its denominators.
Common mistake
Applying the SaaS 3:1 rule to a game with a 90-day player lifespan. Set the bar from your own revenue curve and cash constraints.
Related terms
In Roasy
Roasy computes this across every ad network, Adjust, and RevenueCat on one screen — real revenue, cohort windows, and the same definition everywhere.