LTV to CAC Ratio Calculator
Calculate the gold-standard SaaS unit economics metric to gauge customer acquisition sustainability.
Unit Economics Inputs
Gross profit generated over the average customer tenure.
Blended sales & marketing spend to win one customer.
Interpretation Guidelines
Ratio < 1.5x
Value returned fails to cover customer acquisition costs. Urgently reduce CAC or improve retention.
Ratio 3.0x - 5.0x
Venture benchmark sweet spot. Provides strong unit margins to finance expansion and overheads.
Ratio > 5.0x
Highly profitable unit economics. You may be under-spending on sales and marketing and leaving market share on the table.
Frequently Asked Questions
What is the benchmark LTV:CAC ratio for startups?
A 3.0x to 5.0x ratio is considered the golden benchmark for SaaS and subscription startups. Ratios below 1x destroy capital, while ratios above 5x may signal under-investment in growth.
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