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SaaS LTV to CAC Calculator

Work out customer lifetime value, your LTV to CAC ratio and CAC payback from four numbers, then share it as a live calculator.

  • Free
  • No sign-up to try
  • Works as you type

SaaS LTV to CAC

Customer lifetime value

$3,744

LTV : CAC

2.5x

Months to pay back CAC

16.0 mo

  • Lifetime value = revenue per account × gross margin ÷ monthly churn.
  • LTV : CAC = lifetime value ÷ cost to acquire a customer.
  • Payback = cost to acquire ÷ monthly gross profit per account.

Free, no sign-up to try. Save it as a live calculator you can share; an estimate from the numbers you enter, not financial advice. Check the result against your own records before you rely on it.

See a worked example

How it works

How the SaaS LTV to CAC Calculator works

  1. 1

    Enter your numbers

    Every result updates as you type, with the formula shown under it.

  2. 2

    Check the method

    See how each number is worked out and what it assumes.

  3. 3

    Save it as a Room

    Share a live calculator: others can change the numbers and see the result update.

Worked example

What it makes

Example inputs

Revenue per account per month
$120
Gross margin
78 %
Monthly churn
2.5 %
Cost to acquire a customer
$1,500

Results

Customer lifetime value
$3,744
LTV : CAC
2.5x
Months to pay back CAC
16.0 mo

How it's calculated

  • Lifetime value = revenue per account × gross margin ÷ monthly churn.
  • LTV : CAC = lifetime value ÷ cost to acquire a customer.
  • Payback = cost to acquire ÷ monthly gross profit per account.
  • Assumes: Churn stays at the same monthly rate (the average customer stays 1 ÷ churn months).
  • Assumes: Expansion revenue and discounting are not included.

An estimate from the numbers you enter, not financial advice. Check the result against your own records before you rely on it.

Who it's for

Who uses it

  • Founders

    Check unit economics before a fundraise or a pricing change.

  • Finance and RevOps

    Share one calculator the team can test scenarios in.

  • Investors

    Sanity-check a company's numbers with their inputs.

Good to know

What to consider

  • Lifetime is estimated as 1 ÷ monthly churn, so small changes in churn move LTV a lot.
  • Use gross margin, not revenue, or LTV will be overstated.

Questions

About the SaaS LTV to CAC Calculator

What is a good LTV to CAC ratio?

Many SaaS operators aim for about 3:1 or better, but the right target depends on your growth stage, cash position and payback period. Treat any benchmark as a starting point.

Can I share the calculator with my team or a client?

Yes. The Room keeps the calculator live: anyone with the link can change the numbers and see the result update, with the method and assumptions on the same page.

Make your calculator now

Free, no sign-up to try. It becomes a Room you can edit, publish and share.

Create my calculator

Related

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  • MRR Forecast CalculatorForecast monthly recurring revenue and annual run rate from your current MRR, growth and churn.
  • Churn Rate CalculatorWork out customer churn and retention for a period from two numbers.
  • Sales Funnel CalculatorTurn leads into a forecast: customers and revenue per month from your funnel conversion rates and deal size.
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