Subscription Metrics: LTV and CAC

Understanding the unit economics that drive SaaS valuation.

By Daniel Lee · VC Analyst

· 1 min read

Strategy
Illustration for the article “Subscription Metrics: LTV and CAC”

If you can't measure it, you can't improve it. In SaaS, the ratio of Lifetime Value (LTV) to Customer Acquisition Cost (CAC) is the holy grail. A ratio of 3:1 is healthy; 5:1 is a rocket ship.

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