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Calculate B2B SaaS LTV and CAC

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Your question is Calculate B2B SaaS LTV and CAC. Take a moment with it on the right.

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Problem

Scenario

You're evaluating the economics of a B2B SaaS business and want a clean way to compare customer value with acquisition cost. The team uses these metrics for budgeting, growth planning, and understanding whether different customer segments are actually profitable over time.

Question

Walk me through how you calculate LTV and CAC in a B2B SaaS business. What nuances matter?

What this tests

  • Defining LTV and CAC precisely in a B2B SaaS context
  • Handling retention and churn correctly in lifetime assumptions
  • Matching acquisition cost to the right customer cohort and segment
  • Knowing when simple formulas break down