Customer lifetime value divided by acquisition cost. A ratio of 3:1 or higher indicates sustainable unit economics.
LTV:CAC Ratio is defined as: Customer lifetime value divided by acquisition cost. A ratio of 3:1 or higher indicates sustainable unit economics.
LTV:CAC Ratio is typically measured using data from a CRM / Analytics. This system of record provides the transactional and operational data required to calculate and monitor this metric accurately and in real time.
LTV:CAC Ratio is a key performance indicator used across the following sectors:
Firehawk Analytics connects directly to your CRM / Analytics and delivers a live LTV:CAC Ratio dashboard. Configuration is completed within 48 hours — no data analyst required on your team.
Predictable monthly revenue from active subscriptions. The foundational SaaS metric that all other calculations build upon.
Annualised value of recurring subscription revenue. The primary metric for SaaS valuation and investor reporting.
Percentage of customers or revenue lost in a given period. Even small reductions in churn compound dramatically over time.
In 48 hours, you'll have a live LTV:CAC Ratio dashboard connected to your CRM / Analytics.