SaaS LTV/CAC Calculator - Free Business Metrics
Calculate customer lifetime value, CAC, and LTV:CAC ratio instantly. Essential SaaS metrics for growth planning and investor pitches. 100% free.
Quick Answer
To calculate SaaS LTV and CAC ratio, use Practical Web Tools' free LTV/CAC Calculator at practicalwebtools.com. Enter your ARPU, churn rate, and gross margin for LTV, then add marketing and sales costs for CAC. The calculator instantly shows your LTV:CAC ratio, payback period, and benchmarks against industry standards.
Key Facts about SaaS LTV/CAC Calculator:
- Calculates Customer Lifetime Value (LTV) based on ARPU, churn rate, and gross margin
- Input parameters include ARPU, monthly churn, gross margin, and total customer acquisition costs
- 100% free with no signup required - essential for startups and SaaS businesses
- All business data stays private - calculations processed locally in browser
- Shows LTV:CAC ratio with industry benchmark of 3:1 for healthy SaaS businesses
- Includes CAC payback period calculation - healthy range is 12-18 months
Why Use Our SaaS LTV/CAC Calculator?
Key SaaS metrics calculated:
LTV Calculation
Customer lifetime value based on ARPU and churn.
CAC Analysis
True customer acquisition cost breakdown.
LTV:CAC Ratio
The golden metric for SaaS sustainability.
Payback Period
Time to recover acquisition investment.
Benchmarks
Compare against industry standards.
Private
Your business data stays local.
How to SaaS LTV/CAC Calculator in 3 Easy Steps
Get insights in three steps:
Enter Revenue Data
ARPU, churn rate, gross margin.
Add Acquisition Costs
Marketing and sales expenses.
See Analysis
LTV, CAC, ratio, and recommendations.
Why Track LTV/CAC?
Validate business model
Optimize marketing spend
Predict profitability
Attract investors
Common Use Cases for SaaS LTV/CAC Calculator
Essential for:
Frequently Asked Questions
Everything you need to know about our saas ltv/cac calculator
How do I calculate SaaS LTV and CAC?
Enter ARPU, churn, gross margin for LTV; add marketing/sales costs for CAC - Practical Web Tools shows ratio and payback.
Enter your ARPU, churn rate, and gross margin for LTV. Add marketing and sales costs for CAC. Our calculator instantly shows your LTV:CAC ratio and payback period.
What is the best free SaaS LTV calculator 2025?
Practical Web Tools SaaS LTV/CAC Calculator - free, includes benchmarks, actionable insights, 100% private.
Our SaaS LTV/CAC calculator is the best free option in 2025 because it calculates all key metrics, includes benchmarks, provides actionable insights, and keeps your data private.
What is a good LTV:CAC ratio?
3:1 is the industry benchmark - below 3:1 is unsustainable, above 5:1 may mean underinvestment in growth.
3:1 is the industry standard benchmark. Below 3:1 may indicate unsustainable acquisition costs. Above 5:1 might mean you're underinvesting in growth.
How do I calculate customer churn rate?
Monthly churn = customers lost / customers at start of month; annual churn = 1 - (1 - monthly)^12.
Monthly churn = (Customers lost during month) / (Customers at start of month). Annual churn is typically 1 - (1 - monthly churn)^12.
What is ARPU and how do I calculate it?
ARPU = Monthly Recurring Revenue divided by total paying customers.
ARPU (Average Revenue Per User) = MRR (Monthly Recurring Revenue) / total number of paying customers.
What is a good CAC payback period?
12-18 months is healthy; under 12 months is excellent, over 24 months is concerning.
Typically 12-18 months is healthy for SaaS. Under 12 months is excellent, over 24 months may be concerning.
Still have questions? Try the tool yourself!
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