CAC / LTV ratio calculator

CAC = sales + marketing spend ÷ new customers. LTV = ARPU × gross margin ÷ churn. Target LTV:CAC = 3:1 or higher.

Customer acquisition cost (CAC)
Customer lifetime value (LTV)
LTV : CAC ratio
0.00 : 1
—
CAC
$0
LTV
$0
Avg customer lifetime
0 mo
CAC payback
0 mo
Profit / customer
$0
Total S&M / month
$0

Benchmarks

  • LTV:CAC > 3: healthy — keep scaling marketing.
  • 1 < LTV:CAC < 3: marginal — investigate before scaling.
  • LTV:CAC < 1: losing money on every customer — fix unit economics first.
  • CAC payback < 12 mo: SaaS gold standard. > 24 mo signals problems.
  • Monthly churn: SaaS B2C target < 5%, B2B < 1%.