SaaS LTV & CAC Payback Calculator
Customer lifetime value, LTV:CAC ratio, and payback period.
Open the Interactive CalculatorHow It's Calculated
Avg. Lifetime (months) = 1 ÷ Monthly Churn Rate.
LTV = MRR per User × Gross Margin% × Avg. Lifetime.
CAC Payback (months) = CAC ÷ (MRR per User × Gross Margin%).
Example
Example: $50 MRR, 3% monthly churn (≈33-month lifetime), 80% gross margin, and $300 CAC → LTV ≈ $1,333, an LTV:CAC ratio of 4.4:1, with payback in 7.5 months.
Frequently Asked Questions
What LTV:CAC ratio is considered healthy?
3:1 or higher is the widely cited benchmark for a sustainable SaaS business; below 1:1 means you lose money on every customer.
What is a good CAC payback period?
Under 12 months is generally considered healthy for capital-efficient SaaS growth.