LTV:CAC Calculator
Calculate the LTV to CAC ratio.
Prefer an explanation? Read the guide.
CAC: How to calculate Customer Acquisition CostLTV: How to estimate Lifetime Value (and when not to)LTV:CAC ratio: how to interpret the ratio (and avoid mistakes)
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Tip: you can type commas (e.g., 10,000).
Example
Using the default inputs, the result is:
10.67:1
- LTV
- $5,333
- CAC
- $500
Formula
LTV:CAC = LTV ÷ CAC
- LTV and CAC are calculated consistently for the same segment.
FAQ
What is a good LTV:CAC ratio?
Many SaaS teams target ~3:1, but the right ratio depends on growth rate, cash constraints, churn, and channel mix.
How to interpret
Benchmarks (rule of thumb)
- Many SaaS teams target ~3:1, but it depends on growth and cash needs.
- Higher ratios can signal under-investment in growth.
- Lower ratios can be fine if payback is fast and churn is low.
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