Ads end in 20 seconds

This content is free thanks to our sponsors

Sponsored Ad – I may earn a commission if you click and buy

Online Business

Lifetime Value

LTV — the total amount of money one customer is expected to pay your SaaS company over the entire time they stay subscribed.

Smart SaaS founders compare LTV to CAC. A healthy ratio is at least 3:1 (LTV should be 3× higher than CAC).

It's like calculating how much one loyal customer will spend at your coffee shop over the next three years.

Real world: If the average customer pays $49/month and stays for 18 months, their LTV is $882.

💡 Increase LTV by improving product value, customer success, and reducing churn — the longer customers stay, the more valuable they become.