Last updated October 6, 2026 · Report an error
The LTV:CAC ratio combines two figures the site already has standalone calculators for — Customer Lifetime Value (LTV) and Customer Acquisition Cost (CAC) — into the single ratio SaaS operators and investors actually benchmark against. A ratio of 3:1 or better is commonly considered healthy.
This calculator divides your LTV by your CAC to find the ratio and checks it against that common benchmark.
How it works
Enter your Customer Lifetime Value and Customer Acquisition Cost (use the Customer Lifetime Value Calculator and Customer Acquisition Cost Calculator first if you don't have these figures yet). The tool divides LTV by CAC to find the ratio.
- Enter customer Lifetime Value ($).
- Enter customer Acquisition Cost ($).
- Click Calculate to see your results.
Examples
A healthy SaaS ratio
A $900 customer lifetime value against a $200 acquisition cost gives a 4.5:1 ratio — above the common 3:1 healthy benchmark.
Who should use it
- Benchmarking a subscription or SaaS business's unit economics for internal review or investor conversations.
- Deciding whether to invest more in customer acquisition based on current unit economics.
Industry applications
- SaaS and subscription business analysis
- Venture capital and startup benchmarking
Advantages
- Combines two existing calculators' outputs into the single ratio actually used for benchmarking.
- Includes a common health-benchmark label alongside the raw ratio.
Limitations
- Only as accurate as the LTV and CAC inputs — errors in either feed directly into a misleading ratio.
Common mistakes to avoid
- Using inconsistent time periods or cohorts when calculating LTV and CAC separately, making the resulting ratio less meaningful.
- Chasing an extremely high ratio at the expense of growth, when a lower (but still healthy) ratio with more customers acquired might be the better strategic choice.
Best practices
- Calculate LTV and CAC using the site's dedicated calculators first, using consistent time periods and customer cohorts, before combining them into this ratio.
Tips
- Use the Customer Lifetime Value Calculator and Customer Acquisition Cost Calculator first to generate accurate inputs for this ratio.