CAC & LTV calculator
Calculate your customer acquisition cost, lifetime value, LTV:CAC ratio, and payback period — the unit economics every founder and investor watches.
An LTV:CAC of 3x or higher is the healthy SaaS benchmark — you can afford to invest more in growth.
Why unit economics decide if you can scale
If it costs more to acquire a customer than they're worth, spending more on growth only loses money faster. A healthy LTV:CAC ratio (3x or higher) and a short payback period are what let you confidently pour fuel on acquisition. Track the inputs with analytics tools like Google Analytics 4, Mixpanel, or PostHog and a CRM like HubSpot.
Frequently asked questions
How do you calculate CAC?
CAC (customer acquisition cost) = total sales & marketing spend ÷ new customers acquired in the same period.
How do you calculate LTV?
A common LTV formula is ARPU × gross margin × average customer lifetime, where lifetime (in months) ≈ 1 ÷ monthly churn rate.
What is a good LTV:CAC ratio?
3:1 is the healthy SaaS benchmark. Below 1:1 means you lose money per customer; above 5:1 may mean you're under-investing in growth.
What is CAC payback period?
CAC payback is how many months of gross-margin revenue it takes to recover the cost of acquiring a customer. Under 12 months is generally healthy for startups.