Free STAOS Tool

LTV & LTV:CAC Ratio Calculator

Customer lifetime value is what justifies what you can spend to win a customer. Get LTV, the LTV:CAC ratio vs the 3:1 rule, and your CAC payback in months — fast, no signup.

Avg monthly revenue per customer (ARPU) retainer / subscription / month Gross margin % revenue after delivery cost Lifespan input

Avg customer lifespan months

Customer Acquisition Cost (CAC) total S+M spend ÷ new customers

Lifespan used24 mo

Lifetime gross profit (LTV)$39,600

CAC$6,000

CAC payback3.6 mo

LTV : CAC6.6 : 1

Healthy Above the 3:1 rule. Room to invest more into acquisition.

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Estimate, not a quote. For planning only.

The benchmarks behind this

Healthy LTV : CAC	≥ 3 : 1
"You're under-investing in growth"	> 5 : 1
SaaS healthy CAC payback	< 12 months
LTV formula	ARPU × margin × lifespan

Sources: David Skok / Bessemer SaaS Index; OpenView. See STAOS benchmarks dataset.

LTV:CAC under 3:1 isn't always an "acquisition problem" — it's often a retention + expansion gap. Better discovery, qualification, and onboarding move LTV more than another ad test.

Built by STAOS — sales coaching & fractional sales management for agencies.