LTV Calculator (with LTV:CAC)
Calculate customer lifetime value from ARPU, gross margin and churn, then check your LTV:CAC ratio against the healthy 3:1 benchmark.
Inputs
Cost breakdown
| Item | Monthly | Yearly |
|---|---|---|
| LTV | $40.00 | $800.00 |
| CAC | $300.00 | $300.00 |
Comparison
| Option | Monthly | Yearly |
|---|---|---|
| Current CACLTV:CAC 2.7current | $300.00 | $800.00 |
| Target CAC (3:1)Healthycheapest | $266.67 | $800.00 |
Data updated 2026-06-30 · ChartMogul SaaS Benchmarks chartmogul.com/reports/saas-benchmarks/ · Bessemer Cloud Index www.bvp.com/atlas/state-of-the-cloud · David Skok LTV:CAC standard www.forentrepreneurs.com/saas-metrics/
Industry Benchmark
Data updated 2026-06-30 · ChartMogul SaaS Benchmarks chartmogul.com/reports/saas-benchmarks/ · Bessemer Cloud Index www.bvp.com/atlas/state-of-the-cloud · David Skok LTV:CAC standard www.forentrepreneurs.com/saas-metrics/
Trends & comparison
Trend
Comparison (monthly vs. yearly)
How to use this calculator
Enter ARPU, gross margin, monthly churn and CAC. The result shows LTV, lifespan, the LTV:CAC ratio and a health verdict.
Why LTV:CAC matters
It is the core test of acquisition profitability. A healthy ratio means you can scale spend confidently.
Sources
LTV:CAC ratio benchmarks are sourced from public SaaS industry data including Bessemer Venture Partners and ChartMogul SaaS reports, versioned in the platform configuration.
Frequently asked questions
How is LTV calculated?▾
LTV = (ARPU × gross margin) ÷ monthly churn. Average customer lifespan is 1 ÷ churn months.
What is a healthy LTV:CAC?▾
3:1 is the widely used target. Below ~2:1 acquisition is unprofitable; well above 3:1 you may be underinvesting in growth.
How do I improve LTV:CAC?▾
Lower CAC, raise ARPU or margin, or reduce churn. The calculator shows the CAC that reaches a healthy ratio.