Question 1

What is a good LTV:CAC ratio?

Accepted Answer

3:1 is considered the minimum healthy ratio for SaaS. 4-6:1 is excellent. Above 6:1 may indicate you're under-investing in growth. Below 3:1 means your acquisition costs are too high relative to customer value.

Question 2

How do I increase customer LTV?

Accepted Answer

1) Reduce churn (every month of extra retention adds to LTV). 2) Increase prices for new customers. 3) Expand revenue through upsells and cross-sells. 4) Improve gross margins by optimizing COGS.

Question 3

What's the difference between LTV and CLV?

Accepted Answer

They're the same thing — Customer Lifetime Value (LTV or CLV or CLTV). The metric represents the total revenue (or profit) a customer generates over their entire relationship with your business.

Customer LTV Calculator — Lifetime Value & CAC Ratio Tool

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