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Dictionary by pitch.dog
Margins, break-even & unit economics · Core

LTV to CAC ratio

Also called: LTV:CAC, CLV/CAC

ELI5

Lifetime value divided by customer acquisition cost using compatible definitions.

Used in conversation

“The number is useful only if everyone calculates lTV to CAC ratio the same way.”

Pitch context

You will see “LTV to CAC ratio” in financial models, budgets, board packs and investor materials when the discussion reaches margins, break-even & unit economics.

Why it matters: In margins, break-even & unit economics, different calculation boundaries, periods or accounting treatments can change the number and the decision.

Caution

Calculation, recognition and disclosure can vary by accounting framework, company policy and reporting context.

Connected terms

When the words have to travel

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Sources & evidence · 9

Direct term-level sources and supporting source families.