LTV:CAC Ratio & Payback Calculator

Analyze your unit economics and customer acquisition efficiency

Customer Lifetime Value (LTV)

Revenue metrics

ARPU - Monthly ($)

Gross Margin (%)

Monthly Churn Rate (%)

Calculated LTV

$750

Customer Acquisition Cost (CAC)

Acquisition costs

Sales Costs ($)

Marketing Costs ($)

New Customers

Calculated CAC

$250

Unit Economics

Key metrics for business health

LTV:CAC Ratio

3.00:1

Excellent

Your unit economics are very healthy!

CAC Payback Period

6.7

months

✓ Excellent (≤12 months)

Detailed Analysis

Understanding your unit economics

LTV

$750

CAC

$250

Profit per Customer

$500

Monthly Profit Margin

$38

Calculation Breakdown:

• LTV = ($50 ARPU × 75% margin) ÷ 5% churn = $750

• CAC = ($10,000 sales + $15,000 marketing) ÷ 100 customers = $250

• LTV:CAC Ratio = $750 ÷ $250 = 3.00:1

• CAC Payback = $250 ÷ $38/month = 6.7 months

Industry Benchmarks

How you compare to SaaS standards

LTV:CAC Ratio Benchmarks

Less than 1:1 ❌ Losing money

1:1 to 2:1 ⚠ Needs improvement

2:1 to 3:1 ✓ Good

3:1 or higher ✓✓ Excellent

CAC Payback Benchmarks

0-12 months ✓ Excellent

12-18 months ✓ Acceptable

18-24 months ⚠ Concerning

24+ months ❌ Critical

About LTV:CAC Ratio & Payback Period

The LTV:CAC ratio shows how much value you get from a customer relative to what you spent to acquire them. A ratio of 3:1 or higher indicates healthy unit economics.

The CAC Payback Period shows how many months it takes to recover your customer acquisition cost from the profit they generate. Most SaaS companies aim for under 12 months.

Why it matters: These metrics determine if your business model is sustainable and whether you can profitably scale customer acquisition.