Customer Churn vs LTV to CAC Ratio
What is the difference between Customer Churn and LTV to CAC Ratio? Side-by-side definitions, formulas, and benchmarks for two of the most-watched SaaS metrics.
Definitions
What is Customer Churn?
Customer Churn measures the percentage of customer accounts lost over a given period.
Full Customer Churn definition →
What is LTV to CAC Ratio?
LTV to CAC Ratio compares customer lifetime value against customer acquisition cost to evaluate acquisition efficiency.
Customer Churn vs LTV to CAC Ratio at a Glance
| Customer Churn | LTV to CAC Ratio | |
|---|---|---|
| Category | Metrics | Metrics |
| Formula | Monthly Customer Churn = Customers Lost During Month / Customers at Start of Month | LTV:CAC Ratio = LTV / CAC |
| Benchmarks | average: 2 % per month; target: 0–3 % per month | good: 3 x; great: 6 x |
| Calculator | Customer Churn calculator | LTV to CAC Ratio calculator |
When Each Matters
Customer Churn and LTV to CAC Ratio answer different questions. Customer Churn measures the percentage of customer accounts lost over a given period. 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.