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← KPI Glossary
Technology & SaaS

LTV:CAC Ratio

Customer lifetime value divided by acquisition cost. A ratio of 3:1 or higher indicates sustainable unit economics.

What is LTV:CAC Ratio?

LTV:CAC Ratio is defined as: Customer lifetime value divided by acquisition cost. A ratio of 3:1 or higher indicates sustainable unit economics.

What data source is used to measure LTV:CAC Ratio?

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.

Typical Data SourceCRM / Analytics

Which industries track LTV:CAC Ratio?

LTV:CAC Ratio is a key performance indicator used across the following sectors:

  • ›Technology & SaaS

How does Firehawk Analytics measure LTV:CAC Ratio?

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.

More metrics from Technology & SaaS

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Monthly Recurring Revenue

Predictable monthly revenue from active subscriptions. The foundational SaaS metric that all other calculations build upon.

Technology & SaaS
Billing / Subscription PlatformView →

Annual Recurring Revenue

Track LTV:CAC Ratio in your business

In 48 hours, you'll have a live LTV:CAC Ratio dashboard connected to your CRM / Analytics.

Browse all KPI definitions →

Annualised value of recurring subscription revenue. The primary metric for SaaS valuation and investor reporting.

Technology & SaaS
Billing / Subscription PlatformView →

Churn Rate

Percentage of customers or revenue lost in a given period. Even small reductions in churn compound dramatically over time.

Technology & SaaS
Billing / CRMView →