---
title: "LTGP to CAC"
description: "The efficiency ratio used to judge paid advertising."
canonical: https://tomsharman.com/bookshelf/100m-leads/ltgp-to-cac/
updated: 2026-11-03
---

# LTGP to CAC

> The efficiency ratio used to judge paid advertising.

Alex Hormozi's framework, from $100M Leads, pp. 220 to 234.

Framework 25 of 46 from [$100M Leads](https://tomsharman.com/bookshelf/100m-leads/index.md) by Alex Hormozi. Category: Money and finance.

## The steps

1. **Work out LTGP.** All money a customer spends minus the cost to deliver it.
2. **Work out CAC.** The cost to acquire one customer.
3. **Compare.** Aim for at least 3 to 1.

## Where it comes from

From chapter: #4 Run Paid Ads Part II: Money Stuff, pp. 220–234

## The animation

24 seconds, 4:5, no sound.

- MP4: https://tomsharman-downloads-006143767029.s3.eu-north-1.amazonaws.com/downloads/bookshelf/100m-leads/ltgp-to-cac.mp4
- MP4, dark: https://tomsharman-downloads-006143767029.s3.eu-north-1.amazonaws.com/downloads/bookshelf/100m-leads/ltgp-to-cac-dark.mp4
- Still: https://tomsharman-downloads-006143767029.s3.eu-north-1.amazonaws.com/downloads/bookshelf/100m-leads/ltgp-to-cac.png
- Still, dark: https://tomsharman-downloads-006143767029.s3.eu-north-1.amazonaws.com/downloads/bookshelf/100m-leads/ltgp-to-cac-dark.png