How this site works.
The interface is a desktop. Each section lives at its own URL — clicking dock icons or desktop items navigates to that page, and the relevant window opens automatically.
Windows can be dragged, resized, minimised, and closed. Icons on the desktop can be rearranged by drag — your layout is saved locally.
It’s a design choice, not a gimmick. The structural metaphor matches the practice: the site is a workspace.
LTV : CAC Ratio Calculator
What is the LTV : CAC Ratio?
The LTV : CAC ratio compares how much revenue a customer generates over their lifetime (LTV) versus how much it costs to acquire that customer (CAC).
It answers one brutal question:
“Is this business worth scaling?”
This metric works universally — whether your numbers are in ₹ (INR) or $ (USD).
LTV : CAC Formula
Lifetime Value (LTV):
LTV = (ARPU × Gross Margin) ÷ Monthly Churn
LTV : CAC Ratio:
LTV : CAC = LTV ÷ CAC
Example:
- ARPU = ₹3,000
- Gross Margin = 70%
- Monthly Churn = 5%
- CAC = ₹12,000
LTV = (3000 × 0.7) ÷ 0.05 = ₹42,000 LTV : CAC = 42,000 ÷ 12,000 = 3.5x
How to Interpret the LTV : CAC Ratio
Ratio Meaning Reality
< 1.0x - Unviable - You lose money per customer
1.0x – 2.5x - Risky - Growth depends on funding
> 2.5x - Healthy - Sustainable and scalable
Most strong SaaS companies aim for 3x or higher.
Why This Metric Matters
LTV : CAC is a decision tool, not a vanity metric.
It helps you decide:
- Whether to scale ads
- Whether pricing is broken
- Whether retention needs fixing
- Whether CAC is out of control
High growth with bad LTV : CAC is just accelerated failure.
Common Mistakes
- Using revenue instead of gross margin
- Ignoring churn
- Underestimating CAC by excluding salaries or tooling
- Optimizing ROAS while LTV : CAC is broken
Summary
If you track only one metric for growth sustainability, make it LTV : CAC.
This calculator gives you:
- Instant clarity
- No accounting gymnastics
- A hard yes/no signal for growth decisions