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LTV/CAC Ratio Calculator

Evaluate your unit economics health

The LTV/CAC ratio compares the value generated by a customer to their acquisition cost. It's the ultimate indicator of your acquisition model profitability.

Your Data

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Formula used:

LTV/CAC Ratio = LTV / CAC

Result

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SaaS Benchmarks

< 1xLoss
1x - 3xRisky
3x - 5xHealthy
> 5xExcellent

Optimization Tips

  • A 3:1 ratio is the minimum for a healthy SaaS
  • VCs look for a minimum 5:1 ratio
  • Improve the ratio by reducing churn
  • Calculate payback period as a complement

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Related Metrics

LTVCACPayback PeriodChurn Rate

How to Use This Calculator

The ratio is simply calculated by dividing LTV (customer lifetime value) by CAC (customer acquisition cost).

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