LTV:CAC Ratio Calculator
Compute the SaaS unit-economics ratio that predicts whether your business is fundable, breakeven, or burning cash.
Inputs
Ratio Diagnosis
—
Run to see ratio
LTV:CAC ratio—
CAC as % of LTV—
Verdict—
The 3:1 rule (and when to ignore it)
VCs commonly target 3:1 LTV:CAC for SaaS. Below 3:1, the business is investing too much per customer. Above 5:1, the business is under-investing in growth and likely leaving market share on the table. Use the ratio as a directional indicator, not a hard floor.
Frequently Asked Questions
Should LTV include gross margin?
Yes. Use gross-profit LTV (LTV multiplied by gross margin %) for the cleanest comparison to fully-loaded CAC.
Want unit economics that pencil for VCs?
Riman Agency designs SaaS marketing programs with healthy LTV:CAC.