LTV to CAC Ratio vs Total Marketing Spend
What is the difference between LTV to CAC Ratio and Total Marketing Spend? 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 Total Marketing Spend?
Total Marketing Spend is the total amount a company invests in marketing over a period; it is a key input to CAC and growth-efficiency calculations.
LTV to CAC Ratio vs Total Marketing Spend at a Glance
| LTV to CAC Ratio | Total Marketing Spend | |
|---|---|---|
| Category | Metrics | Marketing |
| Formula | LTV:CAC Ratio = LTV / CAC | — |
| Benchmarks | good: 3 x; great: 6 x | — |
| Calculator | LTV to CAC Ratio calculator | — |
When Each Matters
LTV to CAC Ratio and Total Marketing Spend answer different questions. LTV to CAC Ratio compares customer lifetime value against customer acquisition cost to evaluate acquisition efficiency. Total Marketing Spend is the total amount a company invests in marketing over a period; it is a key input to CAC and growth-efficiency calculations. In practice, healthy SaaS operators watch both, because each one catches failure modes the other misses.