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.

Model Channel ROI->