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.
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.