LTV to CAC Ratio

LTV:CAC Ratio = Customer Lifetime Value ÷ Customer Acquisition Cost. A ratio of 3:1 means each customer is worth 3 times what it costs to acquire them.

Calculate them separately first, using the Lifetime Value Calculator and Customer Acquisition Cost Calculator, then enter both results here.

3:1 or higher is a commonly cited SaaS/subscription benchmark. Below 1:1 means you're losing money on every customer relationship even before overhead; between 1:1 and 3:1 suggests thin margins that may not scale profitably.

Not necessarily — an unusually high ratio can also mean you're under-investing in growth/acquisition and could profitably spend more to acquire customers faster.