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SaaS LTV:CAC Ratio Calculator — Unit Economics & Payback Period

Calculate customer lifetime value (LTV), customer acquisition cost (CAC), LTV:CAC ratio, payback period, and the SaaS Magic Number.

✓ Formula verified: January 2026

SaaS LTV:CAC

Results below

Enter Values

$
%
$
%
Customer Lifetime Value (LTV)
$800.00

Customer Acquisition Cost (CAC)

$250.00

CAC Payback Period

6.3 months

Avg. Customer Lifetime

20.0 months

Average Revenue Per User

$50.00

Monthly Churn Rate

5.0%

SaaS Magic Number

0.20x

Gross Margin

80%

Total Revenue from Cohort

$200,000.00

What if your average revenue per user (arpu) changes? $45 → $720.00 · $50 → $800.00 · $55 → $880.00

Scenario Comparison

Conservative (5%)
$16,470.09
$6,470.09 interest
Your scenario (7%)
$20,096.61
$10,096.61 interest
Aggressive (10%)
$27,070.41
$17,070.41 interest
High-risk (14%)
$40,224.71
$30,224.71 interest
Best return
Share your result
SaaS Unit Economics
3.20:1PoorOKGreat
SaaS Standard
3:1
Golden Ratio
LTV
$800.00
CAC
$250.00
Payback
6.3 months
Lifetime
20.0 months
ARPU (Monthly)
$50.00
Churn Rate
5.0%
Magic Number
0.20x
Avg Lifetime
20.0 months

CAC Payback Timeline

0 mo12 mo (target)24 mo

SaaS Magic Number: 0.20x — Needs improvement: each marketing dollar generates less than $0.50 in revenue. Review channel mix.

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Customer Lifetime Value (LTV): $800.00

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