LTV:CAC ratio calculator.

Measure the relationship between Customer Lifetime Value and Customer Acquisition Cost. Find out if your SaaS has sustainable unit economics and is ready to scale profitably.

Why this matters.

A healthy LTV:CAC ratio (3:1 or higher) means you can profitably acquire customers and scale. A low ratio means every new customer is a loss — unsustainable.

  1. 01
    Know whether your unit economics are sustainable before you scale.
  2. 02
    Benchmark against the industry standard (3:1 ratio).
  3. 03
    Get actionable recommendations to improve the ratio.

Calculate your LTV:CAC.

How much does an average customer pay you per month?

What percentage of customers cancel each month? (e.g. 5 for 5%)

Total sales and marketing costs divided by new customers acquired.

Understanding LTV:CAC.

What is LTV?

Customer Lifetime Value is the total revenue you can expect from a customer over their entire relationship. For SaaS, it’s ARPU ÷ monthly churn rate.

What is CAC?

Customer Acquisition Cost is the total cost of acquiring a new customer — all sales and marketing spend divided by new customers in the period.

How to increase LTV.

  1. 01
    Reduce churn.Better onboarding, customer success, and product engagement. Every retained customer compounds LTV.
  2. 02
    Increase ARPU.Upsells, cross-sells, premium tiers, usage-based pricing that grows with customer value.
  3. 03
    Improve retention.Make the product so useful that switching costs feel real. Long customer relationships = high LTV.

How to decrease CAC.

  1. 01
    Organic channels first.SEO, content marketing, referrals — they compound and don’t require ad spend.
  2. 02
    Optimise conversion funnel.Identify drop-off stages and fix them before scaling top-of-funnel.
  3. 03
    Target better leads.Higher-quality leads convert at better rates. Refine your ICP.
  4. 04
    Build a referral program.Existing customers can be your cheapest acquisition channel.

More startup calculators.

  1. MRR calculator

    Track Monthly Recurring Revenue, growth rate, and Quick Ratio.

  2. Burn rate calculator

    Calculate runway, track cash burn, plan when to start fundraising.

  3. Co-founder equity split

    Fairly divide equity based on contribution, commitment, and expertise.

  4. All business tools

    The complete collection of free calculators.

Need a website that improves your unit economics?

Better unit economics start with a better web presence — lower CAC via SEO and conversion, higher LTV via retention-friendly product. I build both.

Email me

Built by Taro Schenker.