Benchmark
What is a good LTV to CAC ratio for SaaS in 2026?
Median LTV to CAC across B2B SaaS is 3.2 to 1, with the top quartile between 4 to 1 and 6 to 1.
Checked against the source on . The underlying research is dated .
| Segment | LTV:CAC |
|---|---|
| Median, B2B SaaS | 3.2:1 |
| Top quartile | 4:1 to 6:1 |
| Enterprise SaaS, above US$100,000 ACV | 4.5:1 |
| SMB SaaS, US$5,000 to US$20,000 ACV | 2.5:1 |
The 3:1 rule of thumb has been repeated for a decade without much data behind it. The 2026 figures put the actual B2B SaaS median at 3.2 to 1, which means the convention is roughly right at the median and badly wrong at the edges. Enterprise SaaS above US$100,000 ACV averages 4.5 to 1 while SMB SaaS in the US$5,000 to US$20,000 band averages 2.5 to 1.
Read the ratio next to CAC payback rather than alone. A 3.2 to 1 ratio recovered over 24 months and the same ratio recovered over 6 months describe different businesses, because the second one can fund its own growth and the first one needs a balance sheet to do it. That distinction is what the missing middle in Australian venture funding makes expensive.