SaaS
LTV:CAC Ratio Calculator
Calculate the LTV to CAC ratio — a key health indicator showing how efficiently you acquire and retain customers.
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Your LTV:CAC Ratio
LTV:CAC Ratio
5.33x
You generate 5.33x in LTV for every $1 spent on acquisition.
$800 ÷ $150
LTV
$800
CAC
$150
Assessment
Excellent — strong unit economics
Formula
LTV:CAC Ratio = LTV ÷ CAC
LTVCustomer Lifetime Value
CACCustomer Acquisition Cost
Example Calculation
LTV $800, CAC $150.
LTV:CAC = $800 ÷ $150 = 5.33x
LTV:CAC Ratio Benchmarks
Below 1xLosing money on every customer
3x – 5xHealthy SaaS benchmark
5x+Excellent unit economics
Common Mistakes
- ✕Using revenue-based LTV instead of gross profit.
- ✕Ignoring CAC payback period.
- ✕Treating 3:1 as universal for all stages.
Frequently Asked Questions
A 3:1 ratio means you generate $3 in lifetime gross profit for every $1 spent acquiring a customer — leaving room for operating costs, product development, and profit after acquisition.
Disclaimer: Results produced by this calculator are estimates for informational purposes only and do not constitute financial, business, or professional advice. Actual results will vary based on your specific business conditions, market factors, and other variables. Always consult qualified professionals before making business decisions.