SaaS LTV Calculator
Calculate Customer Lifetime Value (LTV) and the vital LTV:CAC efficiency ratio based on average monthly revenue per account, gross margin, and churn rates.
Customer Lifetime Value (LTV) & LTV:CAC Ratio
Customer Lifetime Value (LTV)$4,100.0040.0 months average customer tenure
LTV : CAC Ratio4.3 : 1Healthy SaaS Unit Economics (> 3.0x)
Net Profit Per Account$3,150.00Customer LTV minus upfront acquisition CAC
Step-by-Step Worked Example
Scenario:
Calculation Steps:
Result:
How to Use This Calculator
Assumptions & Limitations
- Customer lifetime equals 1 / Churn Rate (e.g. 2% churn = 50 months).
- Net LTV deducts hosting and support COGS to reflect real contribution dollars.
Frequently Asked Questions
What is a good LTV:CAC ratio for SaaS companies?
An LTV:CAC ratio of 3.0x or higher is considered healthy. Ratios below 2.0x indicate unsustainable acquisition costs, while ratios above 5.0x suggest you may be underinvesting in marketing.
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