# LTV to CAC Ratio: The Unit Economics Metric That Decides Funding

DevFeed: [LTV to CAC Ratio: The Unit Economics Metric That Decides Funding](<https://devfeed.tech/articles/ltv-to-cac-ratio-the-unit-economics-metric-that-decides-funding-9964.md>)

Original publisher: [Read original article](<https://dodopayments.com/blogs/ltv-cac-ratio/>)

Author: Ayush Agarwal

Published: 2026-04-15T00:00:00Z

Content type: tutorial

Language: en

Sources: [Dodo Payments Blog](<https://devfeed.tech/sources/dodo-payments-blog.md>)

Topics: [Software as a service](<https://devfeed.tech/topics/saas.md>), [Software](<https://devfeed.tech/topics/software.md>)

Tags: [benchmarks](<https://devfeed.tech/tags/benchmarks.md>), [cost](<https://devfeed.tech/tags/cost.md>), [customer](<https://devfeed.tech/tags/customer.md>), [funding](<https://devfeed.tech/tags/funding.md>), [growth](<https://devfeed.tech/tags/growth.md>), [how-to](<https://devfeed.tech/tags/how-to.md>), [implementation](<https://devfeed.tech/tags/implementation.md>), [marketing](<https://devfeed.tech/tags/marketing.md>), [onboarding](<https://devfeed.tech/tags/onboarding.md>), [saas](<https://devfeed.tech/tags/saas.md>), [saas-metrics](<https://devfeed.tech/tags/saas-metrics.md>), [sales](<https://devfeed.tech/tags/sales.md>), [unit-economics](<https://devfeed.tech/tags/unit-economics.md>)

## AI overview

A guide to calculating the LTV:CAC ratio for SaaS businesses, including formulas for lifetime value and customer acquisition cost, investor benchmarks, and strategies for improving unit economics.

## Source excerpt

Learn how to calculate your LTV:CAC ratio, what benchmarks investors expect, and practical strategies to improve your SaaS unit economics.