Customer Lifetime Value (LTV)
$
%
%/mo
Customer Acquisition Cost (CAC)
$
months
โ€”
LTV : CAC Ratio
Customer LTV
โ€”
lifetime value
CAC
โ€”
to acquire 1 customer
CAC Payback
โ€”
months to recover CAC
Avg. Customer Life
โ€”
months before churn
Industry Benchmarks
< 1:1
Losing money on every customer Critical
1:1 โ€“ 3:1
Marginal โ€” needs improvement Below target
3:1 โ€“ 5:1
Healthy โ€” SaaS gold standard โœ… Healthy
> 5:1
Excellent โ€” may be under-investing in growth Excellent
๐Ÿ’ก Formula: LTV = (ARPU ร— Gross Margin %) / Monthly Churn Rate  ยท  CAC = Monthly S&M Spend / New Customers  ยท  Payback = CAC / (ARPU ร— Gross Margin %)