LTV:CAC Ratio Calculator →
Calculate your LTV:CAC ratio to benchmark your business health against venture capital investment standards (3:1 golden ratio).
How It Works
Sums all sales and marketing costs (ad spend, team salaries, software tools, commissions) and divides by the total number of new customers acquired during that period.
Formula & Technical Methodology
CAC = (Total Sales & Marketing Expenses) / (Number of New Customers Acquired). CAC Payback Period (Months) = CAC / (Monthly ARPU · Gross Margin %).
When Should You Use This Tool?
Auditing ad campaign efficiency, planning hiring budgets, and verifying unit economic sustainability.
Practical Example
$60,000 monthly sales and marketing spend generating 120 new customers yields a CAC of $500 per customer.
Frequently Asked Questions
- What is a healthy CAC payback period for SaaS?
- A payback period under 12 months is considered excellent for early-stage and growth startups.