SAAS

LTV / CAC Calculator

Lifetime value, payback period, and the famous 3:1 ratio. Sized in seconds.

UPDATED · 2026-04-23 FREE · NO SIGN-UP SAAS-STANDARD FORMULAS

Estimate SaaS unit economics

INTERACTIVE · LIVE · STANDARD FORMULAS

Gross margin is revenue minus direct delivery costs (hosting, support attribution, payment fees), as a % of revenue. Monthly churn is the % of customers who leave each month — a 3% monthly churn = ~30% annual churn. CAC = total sales+marketing spend ÷ new customers in a period.

UNIT ECONOMICS
Avg customer lifetime
33 months
1 ÷ monthly churn
LTV (revenue)
$13,889
Top-line lifetime value
LTV (margin-adjusted)
$10,417
What you actually pocket
LTV / CAC ratio
2.1:1
3:1 = healthy benchmark
CAC payback period
16 months
CAC ÷ monthly gross profit
Verdict
Marginal
Qualitative summary

Standard SaaS formulas. Excludes upsell, expansion, and seasonality — model those separately.

INDUSTRY BENCHMARKS
LTV:CAC > 3:1 Healthy SaaS unit economics. Re-invest in growth.
LTV:CAC 1-3:1 Marginal — optimize CAC or retention before scaling.
LTV:CAC < 1:1 Burning cash. Not sustainable as a growth motion.
CAC payback < 12 mo Efficient growth. Capital recycles fast.
CAC payback 12-24 mo Capital-intensive but workable for enterprise SaaS.
CAC payback > 24 mo Review pricing or sales motion. Capital trap.
WHAT THESE NUMBERS DON'T CAPTURE

These formulas are SaaS-standard but don't account for upsell/expansion revenue or seasonality. If your customers expand 10-20%/year (negative net revenue churn), real LTV is meaningfully higher than these formulas show — model it with a separate spreadsheet.

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