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SaaS LTV:CAC Ratio Calculator

Calculate SaaS customer lifetime value, CAC, and LTV:CAC ratio

LTV:CAC measures the ratio of customer lifetime value to acquisition cost. A healthy SaaS business needs LTV to significantly exceed CAC - 3x or above is considered healthy.

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Tip: Reducing churn from 5% to 3% doubles LTV. Fixing retention is often more valuable than reducing CAC.

Fun Fact

Salesforce and HubSpot both maintain LTV:CAC ratios above 5x - a key reason investors value them at premium multiples.

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