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LTV to CAC Ratio vs Revenue Churn

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

Definitions

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 →

What is Revenue Churn?

Revenue Churn measures recurring revenue lost from existing customers through cancellations, downgrades, or contraction.

Full Revenue Churn definition →

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LTV to CAC Ratio vs Revenue Churn at a Glance

LTV to CAC Ratio Revenue Churn
Category Metrics Metrics
Formula LTV:CAC Ratio = LTV / CAC
Benchmarks good: 3 x; great: 6 x target: 0 % per month or lower (net negative churn)
Calculator LTV to CAC Ratio calculator

When Each Matters

LTV to CAC Ratio and Revenue Churn answer different questions. LTV to CAC Ratio compares customer lifetime value against customer acquisition cost to evaluate acquisition efficiency. Revenue Churn measures recurring revenue lost from existing customers through cancellations, downgrades, or contraction. In practice, healthy SaaS operators watch both, because each one catches failure modes the other misses.

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