LexiconEconomics
LTV : CAC ratio
قيمة العميل مقابل تكلفة جلبه
Definition
The LTV : CAC ratio is the comparison of what a customer is worth over their relationship with the group with the fully loaded cost of acquiring them. The Doctrine default is 3 : 1 as the minimum and 4 : 1 to scale. Each group writes its own ratio down before the year's first commitment, alongside its payback limits.
In plain words
Is a customer worth what you paid to win them? Their lifetime value against that cost.
Saudi usage
- At Monsha'at: القيمة الإجمالية للعميل (opens in a new tab) Accessed
- At IBM Saudi Arabia: القيمة الدائمة للعميل (opens in a new tab) Accessed
Also searched as
- LTV/CAC
- LTV to CAC
- lifetime value to CAC
- قيمة العميل مقابل تكلفة جلبه
Formula
LTV : CAC = Customer lifetime value ÷ Fully loaded CAC
Canonical thresholds
| Threshold | Verdict |
|---|---|
| 3 : 1 | Minimum |
| 4 : 1 | To scale |
Where it is used
In the Doctrine and the Playbook
Related terms
Try the Branch Gate on your numbers
How to cite this definition
Alhajj, S. (2026). “LTV : CAC ratio”. In The Revenue Engineering Lexicon, version 1.0. Riyadh. https://seiflden.com/lexicon/ltv-cac-ratio/