# What is LTV to CAC?

Lifetime value to customer acquisition cost: the gross profit a customer brings over the time they stay, divided by the cost to win that customer. A common rule of thumb is about 3 to 1, and AI companies must count that profit after model costs.

## In real work

Mateo's memo put LTV to CAC at 3 to 1: each clinic brings $9,000 in gross profit over three years and costs $3,000 to win.

## Related terms

- [SAFE](https://prompthausapp.com/learn/safe.md)
- [Valuation Cap](https://prompthausapp.com/learn/valuation-cap.md)
- [Dilution](https://prompthausapp.com/learn/dilution.md)
- [Pro Rata](https://prompthausapp.com/learn/pro-rata.md)
- [Limited Partner](https://prompthausapp.com/learn/limited-partner.md)

## How is this different from Googling it?

Google gives a definition. Prompthaus pairs each term with how it shows up in standups, PRs, prompts, and design reviews. Then it quizzes you until the word sticks. One term a day on iPhone.

- Category: Venture
- HTML: https://prompthausapp.com/learn/ltv-to-cac
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