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    SaaS Metrics Toolbox

    LTV:CAC Ratio Calculator

    Analyze your SaaS unit economics to verify if your customer acquisition cost matches up with long-term retention.

    Inputs

    Unit Economics

    Customer Lifetime Value (LTV)$3,200
    LTV:CAC Ratio3.20x
    LTV:CAC Health VerdictHealthy Target (Strong unit economics)

    What is a good LTV:CAC ratio?

    In SaaS, the ratio of Customer Lifetime Value to Customer Acquisition Cost indicates the capital efficiency of your marketing engine:

    LTV:CAC RatioClassificationStrategic Action
    < 1.0xValue DestructiveYou are losing money on every acquired customer. Decrease CAC or fix churn immediately.
    1.0x – 3.0xSub-optimal / BorderlineNormal for very early startups. Optimize onboarding and conversion to reach 3.0x.
    3.0x – 5.0xHealthy TargetSaaS standard benchmark. The acquisition engine is ready for scalable ad budgets.
    > 5.0xExceptional / Under-investingExtremely efficient. You are likely under-investing in marketing and could grow faster.