LTV:CAC Ratio Calculator

Calculate your LTV:CAC ratio to evaluate SaaS unit economics. Find gross-margin-adjusted LTV, solve for required LTV or max CAC, and benchmark against B2B SaaS standards (3-5× target).

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LTV:CAC Ratio
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Net Value per Customer —
Extended More scenarios, charts & detailed breakdown ▾
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LTV:CAC Ratio
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Status —
Net Value per Customer —
Return on CAC (%) —
Professional Full parameters & maximum detail ▾
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LTV & Ratio

GM-Adjusted LTV —
LTV:CAC Ratio —
Benchmark Assessment —

Payback & Lifetime

CAC Payback Period —
Avg Customer Lifetime —

How to Use This Calculator

  1. Enter LTV and CAC to instantly get the ratio and status assessment.
  2. Use Solve for LTV to find the required lifetime value for a target ratio.
  3. Use Solve for Max CAC to find how much you can afford to spend per customer.
  4. Switch to Professional for gross-margin-adjusted LTV, payback period, and benchmarking.

Formula

LTV:CAC = LTV / CAC

GM-Adjusted LTV = (ARPU × GM%) / Monthly Churn

Payback = CAC / Monthly Gross Profit

Example

Example: LTV $1,500, CAC $500 → Ratio = 3:1 (healthy). ARPU $49, 70% GM, 2% churn → GM-LTV = $49×0.7/0.02 = $1,715.

Frequently Asked Questions

  • The LTV:CAC ratio compares Customer Lifetime Value to Customer Acquisition Cost. A ratio of 3:1 means every dollar spent acquiring a customer returns $3 in lifetime value — the standard B2B SaaS benchmark.
  • B2B SaaS benchmark is 3-5×. Below 1× means you lose money on every customer. 1-3× means growth is too expensive. Above 5× may mean underinvestment in growth. E-commerce targets ~3×; marketplaces often target 4×.
  • GM-adjusted LTV = (ARPU × Gross Margin %) / Monthly Churn Rate. This reflects real economic value after variable costs, not just revenue. Using raw revenue LTV can overstate the ratio.
  • Payback Period = CAC / Monthly Gross Profit per Customer. A 12-month payback with 70% GM and $49 ARPU means CAC ≤ $343. LTV:CAC considers the full lifetime; payback focuses on time to break even.
  • Yes. Above 5× often means you are leaving growth on the table — you could afford to spend more on acquisition and capture market share faster. Many VC-backed SaaS companies intentionally operate at 2-3× to maximize growth speed.

Related Calculators

💸 CAC Calculator ⏳ CAC Payback Period 💎 Customer LTV 📉 Churn Rate Calculator
Sources & References (5) ▾
  1. SaaS Metrics 2.0 — LTV:CAC — David Skok — For Entrepreneurs (David Skok)
  2. State of the Cloud — Bessemer — Bessemer Venture Partners
  3. LTV and CAC — ProfitWell — ProfitWell
  4. SaaS Metrics Guide — ChartMogul — ChartMogul
  5. SaaS Benchmarks 2025 — OpenView Partners — OpenView Partners