LTV:CAC vs Quick Ratio: Unit Economics vs Growth Efficiency
Compare LTV:CAC ratio with Quick Ratio. Both measure SaaS health but from different angles — acquisition efficiency vs revenue sustainability.
Quick Verdict
LTV:CAC tells you if each customer is worth what you paid to acquire them. Quick Ratio tells you if your growth is sustainable or masking a retention problem. Both belong in your monthly metrics review.
Use LTV:CAC to evaluate go-to-market efficiency, negotiate marketing budgets, and determine if your acquisition model is sustainable (target 3:1+).
Use Quick Ratio to assess whether new revenue is outpacing lost revenue — a ratio below 1 means you are shrinking no matter how many new customers you add.
Side-by-Side Comparison
| Attribute | ⚡LTV:CAC Ratio | 🏃Quick Ratio Calculator |
|---|---|---|
| Category | SaaS Metrics | SaaS Metrics |
| Complexity | Quick | Quick |
| Best For | Senior PM, Head of Product, VP Product, CPO | Senior PM, Head of Product, VP Product, CPO |
| Use Cases | Track Metrics, Plan Strategy | Track Metrics |
| What You Enter | Customer LTV ($), customer acquisition cost ($) | New MRR, expansion MRR, contraction MRR, churned MRR |
| What You Get | LTV:CAC ratio, payback period (months), health assessment, benchmark comparison | Quick ratio value, efficiency rating, growth sustainability assessment |
| Leadership Use Case | Evaluate go-to-market efficiency and determine if your business model scales. | Determine if revenue growth is sustainable or masking a retention problem. |
Comparison
LTV:CAC Ratio
QuickQuick Ratio Calculator
QuickDetailed Breakdown
LTV:CAC Ratio
QuickLTV:CAC ratio is the single most important unit economics metric for SaaS businesses. A ratio of 3:1 or higher indicates healthy economics; below that, you are spending too much to acquire customers relative to their value. Product leaders use this metric to evaluate go-to-market efficiency, negotiate marketing budgets, and determine whether the business model is sustainable at scale.
Senior PM, Head of Product, VP Product, CPO
Evaluate go-to-market efficiency and determine if your business model scales.
Quick Ratio Calculator
QuickThe SaaS Quick Ratio measures the efficiency of your revenue growth by comparing incoming MRR (new + expansion) against outgoing MRR (contraction + churn). A Quick Ratio above 4 indicates highly efficient growth; below 1 means the business is shrinking. Product leaders use this metric to evaluate whether growth is sustainable or if a leaky bucket problem needs urgent attention.
Senior PM, Head of Product, VP Product, CPO
Determine if revenue growth is sustainable or masking a retention problem.
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