♾️ SaaS LTV / CAC
Customer lifetime value and acquisition cost ratio
About this calculator
The LTV-to-CAC ratio is the SaaS industry's health check. Enter average revenue per account, gross margin, churn rate, and customer acquisition cost — the calculator returns lifetime value, CAC payback period, and the ratio investors watch.
LTV equals average revenue per account × gross margin ÷ churn rate; the ratio is LTV divided by CAC. Three-to-one or better is the classic healthy benchmark — below that, you are spending too much to win customers worth too little.
Tip: Cutting churn moves LTV more than raising prices does, because churn sits in the denominator — a small retention win compounds into a much bigger lifetime value.