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Account Retention vs LTV to CAC Ratio

What is the difference between Account Retention and LTV to CAC Ratio? Side-by-side definitions, formulas, and benchmarks for two of the most-watched SaaS metrics.

Definitions

What is Account Retention?

Account Retention measures the share of customer accounts that remain active over a period, separate from how much revenue those accounts expand or contract.

Full Account Retention definition →

What is LTV to CAC Ratio?

LTV to CAC Ratio compares customer lifetime value against customer acquisition cost to evaluate acquisition efficiency.

Full LTV to CAC Ratio definition →

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Account Retention vs LTV to CAC Ratio at a Glance

Account Retention LTV to CAC Ratio
Category Metrics Metrics
Formula LTV:CAC Ratio = LTV / CAC
Benchmarks good: 3 x; great: 6 x
Calculator LTV to CAC Ratio calculator

When Each Matters

Account Retention and LTV to CAC Ratio answer different questions. Account Retention measures the share of customer accounts that remain active over a period, separate from how much revenue those accounts expand or contract. LTV to CAC Ratio compares customer lifetime value against customer acquisition cost to evaluate acquisition efficiency. In practice, healthy SaaS operators watch both, because each one catches failure modes the other misses.

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