Calculate your Customer Lifetime Value
Add your average monthly revenue per customer, the average lifespan in months and the CAC you spend to win that customer. The result shows the net LTV after acquisition cost.
Tip: Use data from your core customer segment so your ratio reflects the customers that matter most.
A healthy SaaS model often targets LTV that is several times higher than CAC. If the ratio is poor, you either lower CAC, extend lifespan or improve ARPU through expansion and better CS.