Plug in your spend, traffic, and customer economics. Get CAC, LTV, LTV:CAC, ROAS, payback period, and a clear health verdict — in seconds, free, no signup.
LTV : CAC health
< 1.0: losing money on every customer.
1.0–2.9: marginal, needs work.
3.0+: healthy.
5.0+: may be under-investing in growth.
Payback period
SaaS benchmark: under 12 months for SMB, under 18 for mid-market, under 24 for enterprise. Ecommerce: aim for under 6 months on the first purchase if possible.
ROAS vs ROI
ROAS = revenue / spend. It ignores margin and retention. A "4× ROAS" sounds great but if your margin is 25% you're break-even. Always pair it with LTV : CAC.
A LTV : CAC ratio of 3 : 1 or higher is generally considered healthy. Below 1 : 1 means you're losing money on every customer. Ratios above 5 : 1 may indicate you're under-investing in growth and could spend more aggressively to capture market share before competitors do.
For SaaS, aim for under 12 months for SMB customers, under 18 for mid-market, and under 24 for enterprise. For ecommerce, recovering CAC on the first purchase (under 6 months) is ideal. The shorter your payback, the faster you can re-invest into growth.
ROAS (Return on Ad Spend) is revenue divided by ad spend. It ignores margins and retention. ROI factors in cost of goods, retention, and lifetime value. A "4× ROAS" sounds great, but if your margin is 25%, you're break-even. Always pair ROAS with LTV : CAC to get the full picture.
LTV = Avg Order Value × Avg Purchases per Customer × Gross Margin. This gives you the gross profit per customer over their lifetime. Some companies use a discounted cash flow LTV; the formula above is the most common quick estimate.
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