SaaS LTV:CAC Ratio Calculator
Calculate SaaS Lifetime Value to Customer Acquisition Cost ratio. >3:1 healthy, >5:1 elite. Source: openview.com. Source: openview.com, scalevp.com SaaS benchmarks.
SaaS LTV:CAC Ratio Calculator — Why It Matters
This metric is part of the SaaS benchmark suite reported by OpenView, Scale Venture Partners, and Bessemer. Investors use it alongside Rule of 40, Burn Multiple, and CAC Payback to assess scaling efficiency. Source: openview.com 2026 SaaS Benchmark Report.
Calculation Method
Calculate SaaS Lifetime Value to Customer Acquisition Cost ratio. >3:1 healthy, >5:1 elite. Source: openview.com. Verify formula consistency across periods to enable trend tracking. Mix metrics: no single number tells the whole story; pair with NRR, GRR, and Rule of 40 for full health view.
Benchmarks and Tiers
Top quartile SaaS companies are tracked annually by Bessemer Cloud Index. Median private cohort and public-SaaS medians diverge; private companies often lag public by 2-3 years on metric maturity.
Improvement Strategies
Iterate on the input drivers — increase numerator (revenue, customers, expansion) or decrease denominator (churn, CAC, cycle days). Track quarterly to detect declining trends early.
Frequently Asked Questions
What's a good LTV:CAC?
Top quartile SaaS varies by stage. Source: openview.com benchmarks.
How often should I track this?
Monthly or quarterly. Quarterly aligns with most SaaS reporting cadence.
Does this work for non-SaaS?
Designed for recurring-revenue SaaS. Project-based businesses need different metrics.
Should I include all customers or just paying?
Paying customers only. Free-tier users have separate engagement metrics (DAU/MAU).
How does this compare to LTV:CAC?
Complementary. LTV:CAC measures lifetime efficiency; this metric measures current-period dynamics.