SaaS Economics
LTV CAC CALCULATOR
Measure whether your go-to-market engine creates durable value or just expensive growth.
Core Formulas
LTV = ARR per customer * gross margin / churn
CAC = total sales & marketing cost / new customers
LTV/CAC = lifetime value / acquisition cost
Inputs
Model the engine.
LTV
$20,000
CAC
$3,000
LTV/CAC
6.67x
CAC Payback
15.0 mo
Unit Economics
ARR per Customer
$3,000
Total S&M Cost
$720,000
Monthly Gross Profit / Customer
$200.00
Gross Margin
80.00%
Interpretation
Healthy territory: your lifetime value is at least three times CAC.
Use this ratio with payback period to pressure-test speed and sustainability together.