LTV to CAC Ratio Calculator
Calculate your LTV:CAC ratio to measure growth efficiency. 3:1 is the minimum healthy benchmark. Free browser-based tool.
How LTV to CAC Ratio Calculator Works
LTV:CAC Ratio = Customer Lifetime Value ÷ Customer Acquisition Cost. A ratio of 3:1 means each customer generates 3x what they cost to acquire — the widely-accepted minimum for sustainable SaaS growth. David Skok's framework: at 3:1, you're balancing efficient growth with sustainable unit economics. Above 5:1 may signal under-investment in growth; below 1:1 means you're losing money on every customer.
This tool uses industry-standard formulas and calculations to provide accurate results instantly. All calculations happen in your browser — your data never leaves your device, ensuring complete privacy and security.
Whether you're optimizing marketing campaigns, managing finances, or processing data, this tool gives you the precision and speed you need to make informed decisions quickly.
LTV:CAC Ratio Benchmarks
| Label | Meaning |
|---|---|
| Above 5:1 | May be under-investing — consider scaling acquisition spend |
| 3:1–5:1 | Healthy — David Skok's benchmark for sustainable SaaS |
| 1:1–3:1 | Marginal — improve retention, pricing, or reduce CAC |
| Below 1:1 | Destroying value — spending more to acquire than customers are worth |
Frequently Asked Questions
What is LTV:CAC ratio?
LTV:CAC compares the total revenue a customer generates over their lifetime against what it cost to acquire them. A 3:1 ratio means each customer generates 3x what they cost to acquire — the widely-accepted minimum for sustainable SaaS growth.
What is a good LTV:CAC ratio?
3:1 is the floor benchmark popularised by David Skok. Below 1:1 means you're losing money on every customer. Above 5:1 may mean you're under-investing in growth and leaving market share for competitors.
How do I improve my LTV:CAC ratio?
Two levers: increase LTV (improve retention, add expansion revenue, raise prices) or decrease CAC (improve conversion rates, shift to lower-cost channels, tighten ICP targeting). Improving NRR is often the highest-leverage LTV improvement available.
Is my data stored?
No.
Can I use this on mobile?
Yes.
About This Tool
Built by the Calcyo team and last updated June 2026. All calculations follow industry-standard methodology. No data leaves your browser — calculations run entirely client-side using JavaScript. If you spot an error in the formula or benchmark data, email us at support@calcyo.xyz.