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Board OntologySales

LTV/CAC

Customer lifetime value divided by the fully-loaded cost to acquire that customer (LTV / CAC), expressed as a multiple (e.g. 3.0 = 3:1). The headline unit-economics ratio: how many dollars of lifetime gross profit each acquisition dollar returns. Report the same LTV and CAC definitions published as `sales.ltv` and `sales.cac`. Common pitfall: a ratio quoted without its LTV/CAC definitions, or one that does not reconcile with the reported LTV and CAC. — Sales KPI, I'mBoard-authored (editorial tier).

I'mBoard-authored (editorial tier)

No public third-party standard anchors this KPI yet, so I'mBoard authors and maintains the definition — transparently labeled as editorial tier. See the ontology methodology for the published vs editorial tier system and the back-attribution workstream.

Rogue ID: sales.ltv_cac_ratio Type: Number Domain: Sales

Definition

Customer lifetime value divided by the fully-loaded cost to acquire that customer (LTV / CAC), expressed as a multiple (e.g. 3.0 = 3:1). The headline unit-economics ratio: how many dollars of lifetime gross profit each acquisition dollar returns. Report the same LTV and CAC definitions published as sales.ltv and sales.cac. Common pitfall: a ratio quoted without its LTV/CAC definitions, or one that does not reconcile with the reported LTV and CAC.

Formula

LTV/CAC = LTV / CAC, using the same period and definitions as `sales.ltv` and `sales.cac`. Expressed as a multiple (3.0 = 3:1).

Why it matters

The single number boards use to judge whether growth spend is creating value; below the stage norm, scaling S&M burns cash faster than it builds value.

How to interpret

Per the SaaS-investor convention (BenchmarkIt 2025: healthy minimum 3:1, top performers 5:1+), a ratio below 3.0 at Series A and later signals unit economics that do not yet justify scaling. The stage minimums used by the deterministic consistency check live in KPI_CONSISTENCY_POLICIES.

  • sales.ltv
  • sales.cac
  • sales.cac_payback_period
  • sales.gross_margin

Source

I'mBoard editorial — authored and maintained by I'mBoard, first published 2026-04-01. No third-party standard is cited for this KPI; when one emerges, the definition is back-attributed and promoted to the published tier (a minor version bump). Read the ontology methodology for the published vs editorial tier system, attribution rules, and dispute process.

Stage relevance

Company stagePriority
Series ARecommended
Series BRecommended
Series C+Recommended
PublicRecommended

Suggested for stages: Series A, Series B, Series C+, Public.

Default owning functions

  • Sales
  • Finance

Machine-readable

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