Estimating a target CAC for a startup can be difficult as there is no “one size fits all” formula. However, many experts suggest the following general rule of thumb: your CAC should be equal to or less than three times your lifetime value (LTV). Other known as your LTC/CAC ratio.This means that you should strive to keep your CAC at or below three times the amount of money you expect to make from each customer over their lifetime with you. Additionally, it is important to take into account any other KPIs such as average order value (AOV) and customer churn rate when setting your CAC targets. By using this information in combination with LTV, startups can create an effective pricing strategy that maximizes their ROI and ensures sustainable growth.