CAC:LTV Calculator
A standard subscription/repeat-business formula: how much is a customer worth over their lifetime, compared to what it costs to acquire them?
Estimated customer lifetime value
$432
LTV : CAC ratio
5.4:1
Formula: LTV = average order value × orders/year × lifespan × gross margin. A commonly cited healthy benchmark is 3:1 or higher — a generic subscription-business heuristic, not a RidgeHQ claim.
Why this happens
For repeat-visit activity businesses (recurring lessons, memberships, seasonal rentals), acquisition cost matters less in isolation than it does relative to how much a customer is worth over multiple visits. A 3:1 LTV:CAC ratio or better is a commonly cited healthy benchmark across subscription-style businesses generally — not a RidgeHQ-specific target.
If most of your customers only ever book once, lifetime value and acquisition cost converge to roughly the same thing per booking — this calculator is most useful for operations with real repeat visitation.
See how RidgeHQ supports repeat business
Customer and participant profiles carry booking history across visits, making repeat bookings and targeted offers straightforward.