LTV/CAC Ratio Calculator

What is LTV/CAC Ratio Calculator?

Compare customer lifetime value with customer acquisition cost.

• Quickly judge whether SaaS growth metrics look healthy.
• Estimate MRR, LTV, CAC, churn, and payback period.
• Create a baseline model for pricing, acquisition budgets, and retention work.

Scope and country basis

This tool is formula-based and can be used in any country if you keep the currency and time period consistent.

The country/currency selector changes money formatting. The calculation itself depends on the business metrics, rates, and assumptions you enter.

What each input means

LTV

Money field, formatted in the selected currency.

CAC

Money field, formatted in the selected currency.

Formula and interpretation

The core formula is: LTV/CAC = LTV / CAC. If a country/currency selector is available, money is formatted for that market. Policy-sensitive fields use the selected market where implemented, otherwise they remain user-entered assumptions.

Use the result for first-pass comparison, budgeting, scenario planning, and discussion prep. Before filing taxes, applying for credit, buying insurance, or investing, verify the result against local rules, contracts, and professional advice.

Key concepts

Key inputs for this tool

LTV/CAC Ratio Calculator mainly depends on LTV, CAC. Keep time period, currency, and definitions consistent before comparing outputs.

Recurring revenue

MRR and ARR should distinguish new, expansion, contraction, and churned revenue.

Retention quality

Low churn lifts LTV; high churn destroys acquisition efficiency.

Payback

CAC matters most when compared with gross profit recovery time.

How to read the result

• Read the core LTV/CAC Ratio Calculator output first, then the supporting metrics and scenarios rather than cherry-picking one favorable number.
• Read results by segment, not only as blended averages.
• If LTV looks strong, verify churn and gross margin assumptions.
• When cash is tight, payback period can matter more than long-run LTV.

How to use it

1. Enter the key numbers for your scenario.
2. Run the calculator to see the core result and supporting metrics.
3. Adjust assumptions to compare scenarios.
4. Review the result before using it for budgets, pricing, or decisions.

Common mistakes

• Mixing revenue retention and customer retention.
• Annualizing a short low-churn period.
• Ignoring sales cycle and servicing cost.

Suggested workflow

1. Calculate the core SaaS metric.
2. Split inputs by channel or segment.
3. Use LTV/CAC and payback to set acquisition budget.

Worked example and LTV/CAC scope

Enter a gross-profit lifetime value of $1,200 and a fully loaded customer acquisition cost of $400. The calculator applies $1,200 / $400 and returns 3x.

Gross-profit LTV

$1,200

Fully loaded CAC

$400

LTV/CAC ratio

3x

The ratio is only comparable when LTV and CAC use the same cohort, currency, and time basis. Stripe's customer lifetime value guide explains that CLV can use different methods and is more accurate when gross margin is included. Its SaaS CAC guide defines CAC as sales and marketing costs divided by new customers acquired for a matching period.

A 3x result is the arithmetic output for these inputs, not a universal healthy target. Check cohort retention, payback time, cash timing, sales capacity, and whether LTV is observed or forecast before changing acquisition spend.

Method and review boundary

This calculator runs a local estimate from the inputs and formula shown on this page. It does not retrieve live rules, rates, underwriting decisions, or quotes from banks, tax authorities, insurers, or other providers. Last reviewed: July 24, 2026.

For tax, lending, insurance, retirement, investment, or contract decisions, verify official guidance, the relevant agreement, and a formal quote for your location. Use this result to compare scenarios and prepare questions, not as financial, tax, investment, or legal advice.

Notes

• Amounts are displayed in the selected currency.
• Enter 35 for a 35% percentage field.
• Tax, insurance, lending, and retirement outputs do not replace official rules, contracts, quotes, or professional advice.

FAQ