SaaS

LTV:CAC Calculator

Compare estimated lifetime value against customer acquisition cost to measure unit economics efficiency.

Last reviewed: April 30, 2026Free toolMethodology

LTV:CAC Calculator

These fields start with sample inputs. Keep them or replace them, then run the tool to show a fresh result.

Number fields accept plain values and common formatted input such as 250000, 250,000, or 1,234.56.

Result

Calculating the sample result.

Why it matters

LTV:CAC is a compact ratio that shows whether a SaaS business is creating enough long-term value relative to what it spends to acquire customers.

When to use

  • Board or investor reporting
  • Comparing acquisition channels or customer segments
  • Checking whether higher CAC can still be justified

Inputs & Outputs

Inputs

  • LTV is the estimated customer lifetime value.
  • CAC is the average cost to acquire one customer.

Outputs

  • LTV:CAC ratio shows the relationship between lifetime value and acquisition cost.
  • Value surplus shows the absolute difference between LTV and CAC.

Efficiency ratio method

Divide lifetime value by customer acquisition cost. The ratio shows how many dollars of lifetime value are created for each dollar spent to acquire a customer.

LTV:CAC = LTV / CAC

Worked example

1

Efficiency snapshot

A segment has 12,000 in estimated LTV and 3,000 in CAC.

Inputs

  • LTV: 12,000
  • CAC: 3,000

Steps

  • LTV:CAC = 12,000 / 3,000 = 4.0

Result

  • The ratio is 4.0x.

Edge cases & caveats

  • A strong ratio can still hide slow payback or cash burn if expansion takes time.
  • The ratio is only as credible as the LTV model behind it.

Frequently Asked Questions

What is a strong LTV:CAC ratio?

Context matters, but many SaaS teams look for a ratio that comfortably exceeds 3.0x while also maintaining reasonable payback.

Can a great LTV:CAC still be risky?

Yes. If payback is too slow or churn assumptions are fragile, the ratio can overstate how healthy the business really is.

Keep going

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