Revenue & ROI
What's a good LTV:CAC Ratio?
A good LTV:CAC Ratio for a local business is 3.0x or higher. Lifetime value of a customer divided by cost to acquire them. An excellent LTV:CAC Ratio — the top tier Karbon Agency grades client campaigns against — is 5.0x or higher, while 2.0x marks the minimum acceptable tier.
The three tiers Karbon grades against
| Tier | Value | What it means |
|---|---|---|
| Minimum | 2.0x | The floor. Below this, something is broken. |
| Recommended | 3.0x | The tier a healthy campaign should hit. |
| Excellent | 5.0x | Top-tier performance worth defending. |
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.
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.