LTV to CAC Ratio Calculator (Kenya)

This LTV to CAC ratio calculator compares the lifetime value of a customer to the cost of acquiring one, the single clearest test of whether your marketing spend is actually building the business.

By Veira Team, Kenya SME toolsPublished June 2026Updated June 2026

Calculator

Customer lifetime value (KES)

Cost to acquire a customer (KES)

Result

LTV to CAC ratio is 3.6 to 1

Lifetime valueKES 9,000

Acquisition costKES 2,500

Ratio3.6 : 1

VerdictHealthy: growth pays for itself

A ratio around 3 to 1 or higher is generally healthy: each customer returns at least three times what they cost to win. Below 1 means you lose money per customer. Raise it by lifting lifetime value or cutting acquisition cost.

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The test of whether growth pays

Spending to win customers only makes sense if a customer is worth more than they cost. The LTV to CAC ratio puts those two numbers side by side and tells you whether your growth engine builds or drains the business.

A ratio near 3 to 1 is a common healthy benchmark. Far below that, you are buying customers at a loss; far above it, you may be under-investing and could grow faster. You move it by raising lifetime value, through repeat sales and retention, or by lowering acquisition cost.

Worked examples

A retailer

Lifetime value KES 9,000, acquisition cost KES 2,500.
Ratio is 3.6 to 1: healthy, growth pays.

Frequently asked questions

What is a good LTV to CAC ratio?

Around 3 to 1 or higher is a common benchmark: a customer returns at least three times what they cost to acquire. Below 1 means you lose money per customer; well above 3 may mean you are under-investing in growth.

How do I calculate it?

Divide customer lifetime value by the cost to acquire a customer. If lifetime value is KES 9,000 and acquisition cost is KES 2,500, the ratio is 3.6 to 1.

How do I improve the ratio?

Raise lifetime value through repeat business, retention and higher average spend, or cut acquisition cost by improving conversion and focusing on cheaper channels. Both lift the ratio.

What is customer lifetime value?

The total profit you expect from a customer over the whole time they buy from you, not just their first purchase. Repeat customers are worth far more than their first sale suggests.

How does Veira help?

Veira tracks repeat purchases and customer history, so you can estimate lifetime value from real behaviour rather than a guess, and judge whether your marketing pays.