What's a good LTV:CAC Ratio?
Karbon Agency's target for LTV:CAC Ratio is 3.0x or higher. That is Karbon's own grading target, not a published industry average. Lifetime value of a customer divided by cost to acquire them. Excellent is 5.0x or higher (Karbon target), and the minimum acceptable tier is 2.0x or higher (Karbon target).
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The three tiers Karbon grades against — and where each comes from
| Tier | Value | What it means | Basis |
|---|---|---|---|
| Minimum | 2.0x | The floor. Below this, something is broken. | Karbon target |
| Recommended | 3.0x | The tier a healthy campaign should hit. | Karbon target |
| Excellent | 5.0x | Top-tier performance worth defending. | Karbon target |
Higher is better for this metric.
How it's calculated
Customer LTV / Customer Acquisition CostWhy LTV:CAC Ratio matters
The fundamental health metric for any business. Below 2x, you are likely losing money on acquisition. Above 5x, you might be under-investing in growth.
Karbon target
No independent public benchmark exists for LTV:CAC Ratio as Karbon measures it. The tiers above are Karbon Agency's own grading targets for local-business campaigns, not an industry average, and we don't cite one we haven't found.
Where does your LTV:CAC Ratio land?
Karbon Agency grades every client campaign against these exact tiers, live on a dashboard — no guessing, no quarterly PDFs.