Free tool

What a customer costs, and what one is worth

Four numbers decide whether growth makes you richer or poorer. Most founders can produce two of them. This works out all four from figures you already have.

Last reviewed 2026-08-22

Cost to acquire one customer (CAC)
₦50,000
Gross profit per customer per month
₦15,000
Implied customer lifetime
20 months
Lifetime value (LTV)
₦300,000
LTV to CAC
6.0 : 1
CAC payback
3.3 months
Healthy, and possibly too healthy. A ratio this high often means you are underspending on growth and leaving the market to someone else. Expect to be asked why.

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The two mistakes this is built to catch

Counting only the ad spend

If you spend half your week selling, that time is part of what a customer costs. Leaving it out gives you a CAC that looks excellent right up until you hire a salesperson and it triples. Put a market rate on your own hours and include them.

Using revenue instead of gross profit

Lifetime value is built from what is left after you have served the customer, not what they paid. Using revenue is the most common way an LTV ends up two or three times larger than the truth, and it is the first thing a careful investor recalculates.

Put these numbers where an investor can read them

The GTM profile holds them as structured fields, scores what you have against a published rubric, and shows which blank one costs you the most.

Questions: support@ranked.ng

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