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LTV:CAC measures the ratio of customer lifetime value to acquisition cost. A healthy SaaS business needs LTV to significantly exceed CAC - 3x or above is considered healthy.
Formel
- LTV
- 3x is healthy; payback < 12 months is ideal — 3x is healthy; payback < 12 months is ideal
Trinn-for-trinn guide
- 1LTV = (ARPU x Gross Margin) / Monthly Churn Rate
- 2CAC = Total Sales & Marketing spend / New customers acquired
- 3LTV:CAC >= 3x is healthy; payback < 12 months is ideal
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What is Saas Ltv Cac?
LTV:CAC measures the ratio of customer lifetime value to acquisition cost. A healthy SaaS business needs LTV to significantly exceed CAC - 3x or above is considered healthy
How accurate is the Saas Ltv Cac calculator?
The calculator uses the standard published formula for saas ltv cac. Results are accurate to the precision of the inputs you provide. For financial, medical, or legal decisions, always verify with a qualified professional.
What units does the Saas Ltv Cac calculator use?
This calculator works with inches. You can enter values in the units shown — the calculator handles all conversions internally.
What formula does the Saas Ltv Cac calculator use?
The core formula is: LTV = (ARPU x Gross Margin) / Monthly Churn Rate. Each step in the calculation is shown so you can verify the result manually.
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