SaaS

What Is a Good LTV:CAC Ratio?

"Good" shifts with margins, cash on hand, and payback time—still useful as a quick pair-check when definitions line up.

Same cohort, same window

LTV and CAC disagree when churn is counted monthly yet CAC is quarterly—or when margin input is too optimistic.

Put LTV and CAC on the same time basis before quoting ratios.

Cash beats bragging multiples

High LTV:CAC with slow payback can still choke hiring or ad spend.

Open payback months beside the headline ratio.

Use three tools, not one

Combine LTV, CAC, and payback calculators so storytelling stays tethered.

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