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Free Tool Arena

Career & Growth · Free tool

CAC / LTV Calculator

Customer acquisition cost to lifetime value ratio. 3-5x ratio is healthy for SaaS.

Updated April 2026
LTV
$960
CAC
$400
LTV : CAC ratio
2.40x
Payback period
10.0 months

Months of gross-margin revenue needed to recover CAC.

Struggling

Acquisition is expensive relative to value. Improve retention or margin.

Tier reference
  • < 1x — losing money on every customer
  • 1–3x — struggling, unit economics unhealthy
  • 3–5x — healthy SaaS target
  • > 5x — possibly under-investing in growth
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What it does

LTV/CAC is the single SaaS sanity check. 3-5x is healthy, <1x is losing money, >5x might mean under-investing in growth.

Runs entirely in your browser — no upload, no account, no watermark. For more tools in this category see the full tools index.

Embed this tool on your siteShow snippet

Paste this snippet into any page. Loads on-demand (lazy), no tracking scripts, and sized to most dashboards. Replace the height to fit your layout.

<iframe src="https://freetoolarena.com/embed/cac-ltv-calculator" width="100%" height="720" frameborder="0" loading="lazy" title="CAC / LTV Calculator" style="border:1px solid #e2e8f0;border-radius:12px;max-width:720px;"></iframe>
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How to use it

  1. Enter CAC + monthly revenue.
  2. Set margin + lifetime.
  3. Read LTV/CAC ratio.

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