Finance & Strategy
LTV:CAC Ratio
The single most important unit-economics metric.
Calculate the ratio of customer lifetime value to acquisition cost. Industry benchmark is 3:1 — below that, you're subsidizing growth; above 5:1, you're probably under-investing in acquisition.
Inputs
Adjust to model your scenario
$2,275
$
$650
$
LTV:CAC ratio
3.50×
Healthy SaaS / DTC benchmark. Sustainable to scale.
Contribution per customer
$1,625
Formula
LTV:CAC = Customer Lifetime Value ÷ Customer Acquisition Cost
Benchmarks
< 1×Losing money on every customer
1–3×Recovering acquisition — but slow
3–5×Healthy — keep scaling
> 5×Likely under-investing in acquisition
FAQ
How operators use this calculator.
3:1 is the benchmark from SaaS Capital and OpenView — it balances acquisition investment with capital efficiency.
Related tools
Tools operators run alongside this one.
Finance & Strategy
Customer Lifetime Value (LTV)
The total revenue a customer is worth.
Open calculator
Finance & Strategy
Customer Acquisition Cost (CAC)
The true cost of acquiring one new customer.
Open calculator
Finance & Strategy
CAC Payback Period
How fast you recover what you spent to win a customer.
Open calculator
Need more than the math?
Get the SAZ team running this for your business.
Email info@Sedighi.ca or call (604) 632-4959. A senior partner responds within one business day.
Responding to inquiries within 1 business day