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Is the LTV:CAC healthy

Digital & Marketing Analytics · Unit Economics · easy · Company-context scenario · 5 min

A SaaS product has customer lifetime value (LTV) of $900 and customer acquisition cost (CAC) of $300. What is the LTV:CAC ratio, and is it in the range usually considered healthy? Enter the ratio as a number (LTV divided by CAC).

Evaluation criteria

  • Uses the correct method or distribution
  • Shows the calculation
  • Rounds as the prompt asks

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Source

Company-context scenario built from real product constraints. It is not represented as a verbatim interview question.

Your answer

x CAC

Commas, currency symbols and a trailing percent sign are fine. Answers within ±0.1 x CAC of the expected value are accepted.

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