SaaS metrics

What is LTV (Lifetime Value)?

LTV is the total revenue a customer generates over their entire relationship with the company.

LTV (Lifetime Value) estimates how much, on average, each customer pays over time until they cancel. The lower the churn and the higher the ticket, the higher the LTV.

Comparing LTV to CAC (acquisition cost) shows whether customer acquisition is sustainable: a healthy LTV/CAC ratio means each customer generates far more than it cost to win.

Formula

LTV ≈ ticket médio mensal ÷ churn mensal

Use it in practice

SaaS Simulator

Frequently asked questions

What is the ideal LTV/CAC ratio?
A common benchmark is LTV at least 3× CAC, indicating healthy acquisition and room to grow.
How do I increase LTV?
By reducing churn, driving upsell/expansion and raising the ticket — all increase value per customer.