Free LTV Calculator
Analyze your complete unit economics. Calculate Customer Lifetime Value, LTV:CAC ratios, and payback periods instantly.
How to use the LTV Dashboard
What Unit Economics mean
Customer Lifetime Value (LTV) represents the total net profit a customer provides before canceling. Paired with Customer Acquisition Cost (CAC), these unit economics act as the structural foundation of your business model. They determine exactly how much you can spend on sales and marketing while remaining profitable.
The LTV:CAC Ratio and the CAC Payback Period dictate your cash flow efficiency. A high ratio means you are generating strong returns on ad spend, while a short payback period ensures your cash is freed up rapidly to reinvest into acquiring the next user.
What Are Good Metrics for SaaS?
These benchmarks represent industry standards for healthy subscription and recurring-revenue businesses.
| Metric | Benchmark | Context |
|---|---|---|
| LTV:CAC Ratio | 3:1 to 5:1 | Ratios below 1:1 indicate unprofitable scaling. |
| CAC Payback Period | 6 to 12 Months | Faster payback means less reliance on VC funding. |
| Monthly Churn | 3% to 5% | Enterprise SaaS should aim for under 2% monthly. |
Is your CAC Payback period too long?
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Book a free consultationFrequently Asked Questions
LTV is (ARPU × Margin) / Churn. Payback Period is CAC / (ARPU × Margin). Lifespan is 1 / Churn.
Calculating LTV purely on gross revenue ignores the cost of service delivery, leading to highly inflated profit projections and overspending.
You are breaking even strictly on unit economics, but failing to cover fixed overhead costs. This model is unsustainable without optimization.
You must either lower your Customer Acquisition Cost through better ad performance, or increase ARPU by upselling customers sooner.