https://www.reddit.com/r/SaaS/comments/1lg3e4p/the_2025_guide_to_ltvcac_ratios_in_saas/

Hey SaaS builders  — whether you're deep in growth mode or still figuring out your numbers, let’s talk about something that comes up a lot: the LTV to CAC ratio.

So what’s all the fuss about?

• LTV (Customer Lifetime Value): How much a customer is worth to your business over their entire journey — whether that's a few months or a few years.
• CAC (Customer Acquisition Cost): What it costs to win that customer — ad spend, cold emails, demos, sales calls… it all adds up.
• LTV:CAC Ratio: Simply put, how much you earn vs. how much you spend to earn it.

If you’re spending more to get a customer than you make from them,  red flag.

If you’re making way more than you spend? Great — but maybe you’re not investing enough in growth.

You want to be in the sweet spot — balancing smart growth with strong returns.

The Magic Numbers

Below 1:1 —  Losing money. Yikes.

2:1 —  Some profit, but room to improve.

3:1 to 4:1 —  Ideal zone for most SaaS companies.

6:1 or more —  Very profitable, but possibly too conservative.

What About Different Channels?

Some acquisition strategies cost more than others:

• Email Marketing: Super cheap — but only if you’ve got a solid list.
• Webinars: High effort, great engagement.
• LinkedIn Ads: B2B-friendly, but content quality is key.