Is your unit economics actually working?
Enter your SaaS unit economics to see lifetime value, CAC payback period, and whether your LTV:CAC ratio meets industry benchmarks. The margin-adjusted LTV formula used here is the standard one investors and operators reference: (ARPU × gross margin) / monthly churn.
Revenue left after delivery costs (hosting, support, payment fees).
Share of customers you lose each month. 2% is a strong SaaS benchmark.
All-in cost to acquire one customer: ad spend, sales salaries, tooling.
Optional. Discounts future cash flows for NPV-adjusted LTV. Leave at 0 for the simple formula.
Without margin: $2,667
Healthy SaaS targets 3:1 or better.
26.7 mo profitable after payback
Each customer pays back acquisition cost several times over. You can reinvest the surplus into growth with confidence.
Churn is the single biggest lever on LTV. A 1-point reduction can swing your ratio dramatically.
How LTV:CAC and payback shift as you raise ARPU or cut CAC. Holding churn and margin constant.
| ARPU scenario | CAC scenario | LTV:CAC | Payback |
|---|---|---|---|
| Current ARPU | Current CAC | 5.0 : 1 | 6.7 mo |
| +10% ARPU | −20% CAC | 6.9 : 1 | 4.8 mo |
| +25% ARPU | −40% CAC | 10.4 : 1 | 3.2 mo |
Compiled from Bessemer Venture Partners' State of the Cloud and OpenView / SaaS Capital public benchmark reports.
TrafficLoopback runs Thompson-sampling bandits on your owned traffic, so you find winning ad creatives without manual significance tests. Free during beta.
Start free in beta