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LTV:CAC Ratio Calculator

Unit-economics health check for your SaaS

Compare customer lifetime value against acquisition cost. The classic healthy band for SaaS is a ratio between 3 and 5.

Inputs

LTV:CAC ratio 5.80x

Above 5: strong unit economics. Consider reinvesting in acquisition.

LTV:CAC Ratio Calculator FAQ

What is a good LTV:CAC ratio?

A ratio of 3:1 is the common rule of thumb: you earn three times what it costs to win a customer. Below 1 you lose money on every sale; above 5 you may be underinvesting in growth.

How do I improve my ratio?

Raise retention or pricing to lift LTV, and sharpen targeting or rely more on organic channels to lower CAC.