SaaS Unit Economics & LTV:CAC Ratio Calculator

Analyze subscription business health, customer acquisition costs, churn rates, and payback velocity.

Mathematical Methodology & Formula

LTV = (ARPU × Gross Margin %) ÷ Monthly Churn Rate | LTV:CAC = LTV ÷ CAC

Frequently Asked Questions

What is a good LTV:CAC ratio for SaaS?

A healthy SaaS business typically targets an LTV:CAC ratio of 3.0x or higher with a CAC payback under 12 months.