SaaS Unit Economics (CAC/LTV) Calculator
Calculate Customer Acquisition Cost (CAC), Lifetime Value (LTV), LTV:CAC ratio, and CAC payback period. Benchmark your SaaS unit economics.
Unit Economics Inputs
LTV:CAC Ratio
8:1
Lifetime value vs. acquisition cost
Healthy: 3:1 or higher
Customer Acquisition Cost (CAC)
$500
S&M spend / new customers
Lifetime Value (LTV)
$4,000
ARPU x gross margin x user lifetime
CAC Payback Period
4.2 mo
Months to recover acquisition cost
LTV vs. CAC Comparison
How the CAC/LTV Calculator Works
This calculator computes your Customer Acquisition Cost (CAC), Lifetime Value (LTV), their ratio, and the CAC payback period. These are the fundamental unit economics that determine whether your SaaS business model is sustainable and scalable.
Unit Economics Formulas
Unit Economics Benchmarks
A healthy LTV:CAC ratio is 3:1 or higher, meaning each customer generates 3x their acquisition cost over their lifetime. CAC payback under 12 months is ideal for SaaS businesses.
The 3:1 LTV:CAC Rule
A 3:1 ratio means you spend $1 to acquire a customer who generates $3 in gross profit over their lifetime. Below 1:1 is unsustainable — you are losing money on every customer.
CAC Payback Under 12 Months
A payback period under 12 months means you recover acquisition costs within the first year. This allows you to reinvest cash quickly and compound growth without needing external funding.