What is it?
The LTV/CAC ratio shows how many times lifetime value covers acquisition cost.
Unit economics
LTV to CAC ratio
The LTV/CAC ratio shows how many times lifetime value covers acquisition cost.
Enter LTV and CAC (you can pull them from the sibling calculators). Ratio and health status update live.
LTV to CAC ratio
Inputs
Results
LTV/CAC ratio
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Guide
Why LTV/CAC matters
Why it matters
A common SaaS benchmark is that a ratio around 3× or higher signals a healthier model.
How it works
Enter LTV and CAC (you can pull them from the sibling calculators). Ratio and health status update live.
Formula Ratio = LTV ÷ CAC
Go deeper
Why you’ll love this
LTV/CAC is the heart of unit economics. One ratio shows whether customer value repays acquisition cost.
How to jump in
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Enter LTV
From the LTV tool or your own model.
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Enter CAC
Cost to acquire one customer.
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Read ratio and health
Ratio plus a plain-language health status.
What you walk away with
- Built-in health readout
- Links to LTV and CAC
- Clear guide
- Free
Where it shines
Model check
Validate unit economics before scaling growth.
Investor updates
Share one standard, understandable metric.
Growth budget
If weak, cut CAC or raise LTV before spending more.
Quick answers
What is a good ratio?
Many SaaS teams aim near 3× or higher; benchmarks vary by industry.
What if the ratio is under 1?
Each customer is worth less than acquisition cost — fix the model before scaling.