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Customer lifetime value and customer acquisition cost are estimates used to ask whether the economics of acquiring and serving customers can support growth. The formulas can be helpful, but a calculator cannot make uncertain inputs reliable. Show the assumptions and use ranges.
Calculate CAC for one segment and period
CAC = sales and marketing cost attributable to acquiring customers ÷ new customers acquired.
Choose a period that reflects the sales cycle. Include relevant salaries and contractor cost, advertising, content, events, commissions, tools, agencies, and other acquisition spending under a written policy. Separate customer success and account expansion if they are not part of new acquisition.
Calculate simple LTV
A common steady-state estimate is:
LTV = average monthly revenue per customer × gross margin percentage ÷ monthly customer churn rate.
If average monthly revenue is $100, gross margin is 80 percent, and monthly churn is 4 percent, the formula estimates $2,000 in gross-margin contribution. This is an illustration, not a forecast for your business. It assumes relatively stable revenue, margin, and churn.
Calculate gross-margin CAC payback
CAC payback months = CAC ÷ monthly gross-margin contribution per new customer.
With $600 CAC and $80 monthly gross-margin contribution, simple payback is 7.5 months before overhead, financing, and tax. Cohort changes, onboarding costs, delayed collections, and expansion can alter real cash payback.
Build a three-case calculator
Create low, expected, and high cases for revenue, gross margin, churn, and CAC. Do not vary every input in the same favourable direction. Ask which assumption has the largest effect and what evidence could improve it.
- Low case: slower conversion, higher acquisition cost, lower margin, and faster churn.
- Expected case: current cohort behaviour with known one-off effects removed.
- High case: improvements already supported by a completed test, not a wish list.
When the simple LTV formula fails
Use a cohort cash-flow model when the company has very few customers, uneven contract sizes, annual prepayments, material onboarding cost, strong expansion, changing churn, or multiple segments. Forecast contribution by month for each cohort and discount future cash if the decision requires it.
Common calculation mistakes
- using revenue instead of gross-margin contribution for LTV;
- excluding the people and tools that create acquisition;
- combining enterprise and self-serve customers;
- using a short favourable period for churn;
- comparing cash CAC with annualised future revenue;
- treating a high LTV to CAC ratio as proof that more spending will scale;
- ignoring the time needed to recover cash.
Stripe’s CAC guide likewise treats definition, segment, payback, and the relationship with LTV as essential context.
Buyer verification
Rebuild CAC from the general ledger and hiring records. Rebuild recurring revenue from customer and billing data. Test churn and margin definitions, then calculate cohorts using the same rules. Read the SaaS metrics guide and online business valuation guide before turning a unit-economics estimate into an acquisition price.
Why this matters for Mauritius businesses
Mauritius is rolling out MRA e-invoicing in phases by taxpayer category. The timetable and status can change, and MRA may separately notify a taxpayer, so businesses should check the current MRA e-invoicing page and their own notices before acting on a deadline.
The Codeblix approach
Codeblix eInvoicing is MRA-listed as an EBS Solution Provider (SN 95, BRN C24214425). The system handles every aspect of MRA compliance automatically - real-time fiscalisation, IRN tracking, QR code generation, hash chain maintenance, and monthly transaction reporting. The local support team in Chamouny is available to help with any MRA query, audit, or transition question.
What to do next
If your present process does not support the fiscal-invoice requirements that apply to your business, document the gap and test an appropriate EBS workflow. Codeblix can review your business requirements and onboarding scope before preparing a proposal; regulatory conclusions remain with the taxpayer and its advisers.
Frequently asked questions
The most common questions about saas ltv and cac calculator: formulas with sensible inputs are covered in the FAQ section below. If you have a question that is not covered, the local Codeblix support team is available by phone, WhatsApp, or email.
Related resources
Codeblix publishes a regular blog covering MRA e-invoicing, VAT compliance, payroll, and business management for Mauritius businesses. The blog is updated weekly with new guides, how-tos, and case studies. You can also find detailed product documentation, video tutorials, and a knowledge base in the Help Centre.
Frequently asked questions
What is the simple SaaS LTV formula?
A common steady-state estimate is average monthly revenue per customer multiplied by gross margin, divided by monthly customer churn. It is only useful when its assumptions fit the business.
What should SaaS CAC include?
Include the sales and marketing costs needed to win new customers for the same period and segment, including appropriate people, tools, media, commissions, and agency costs.