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.
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.