Free LTV:CAC ratio, calculated instantly.
Find your LTV:CAC ratio instantly. See if your growth engine is efficient and benchmark your performance against SaaS standards.
Automated tracking · no spreadsheets · live in 30 minutes.
Calculator Inputs
Results
Lifetime Value (LTV)
Acquisition Cost (CAC)
LTV : CAC Ratio
Excellent ratio.
How to measure LTV:CAC.
LTV:CAC tells you the return on investment for your acquisition spend. It combines your retention (churn), pricing (ARPA), and marketing efficiency (CAC).
1. Enter LTV Inputs
Provide your Average Revenue Per Account (ARPA), Gross Margin, and Churn Rate. This calculates how much gross profit a customer will generate over their lifetime with you.
2. Enter CAC Inputs
Input your total sales and marketing spend for a period, and the number of new paying customers acquired in that same period.
3. Read Your Ratio
The calculator divides LTV by CAC. A 3:1 ratio is standard. If you are below 3:1, you need to lower CAC, raise prices, or reduce churn.
Questions, answered.
Everything teams ask before switching their attribution to Stripe truth. Still curious? Talk to us.
LTV:CAC is the ratio between the Lifetime Value of a customer and the Cost to Acquire that Customer. It measures the ROI of your sales and marketing efforts.
The industry benchmark for SaaS is 3:1, meaning you generate $3 in lifetime value for every $1 spent on acquisition. A ratio of 1:1 means you lose money on every customer. A ratio of 5:1 or higher might mean you are under-investing in marketing and leaving growth on the table.
We use the standard SaaS formula: (Monthly ARPA × Gross Margin %) ÷ Monthly Churn Rate. This is a simplified predictive model. As you grow, you should calculate true historical LTV based on actual cohort retention data.
Because you only pocket the gross profit, not the top-line revenue. If your hosting and support costs take 20% of revenue, you shouldn't count that 20% towards the value the customer generates for acquiring them.
Ready to see which ads actually pay?
Start free, connect Stripe in 30 minutes, and get attribution that reconciles to the cent.
- Free to start — no credit card
- Live data in 30 minutes
