Calculate SaaS LTV, CAC, LTV/CAC ratio, and break-even point. Essential for indie hackers.
LTV
$580
LTV/CAC
3.9x
Lifetime
20 mo
Break-even
5 mo
Margin
80%
Payback
3.2 mo
Healthy
SaaS Metrics
LTV
Total revenue per customer. Formula: ARPA / Churn.
CAC
Cost to acquire one customer.
LTV/CAC
Target 3x+. Below 1x means losing money.
Break-even
Months until customer pays back CAC.
FAQ
Good LTV/CAC?
3:1+ is healthy. Below 1:1 means losing money.
How to calculate LTV?
LTV = (ARPA x Gross Margin) / Churn Rate.
Good churn rate?
Under 5% monthly for SMB. Enterprise under 2%.
Reduce churn?
Better onboarding, value delivery, proactive support.
Break-even?
Months until revenue exceeds CAC. CAC / (ARPA x Margin).