What Is Customer Lifetime Value (LTV)? Formula, 2026 Benchmarks, and the 3:1 Rule
SaaS LTV is gross-margin ARPA divided by churn. Benchmarkit's 2026 median CLTV:CAC is 4.1x; top quartile is 7.8x. The 3:1 rule is the floor, not the target.

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SaaS LTV is gross-margin ARPA divided by churn. Benchmarkit's 2026 median CLTV:CAC is 4.1x; top quartile is 7.8x. The 3:1 rule is the floor, not the target.
NRR is existing-customer ARR after expansion, contraction, and churn. Benchmarkit's 2026 private median is 102%; top quartile is 110%. Usage-based prints 108%, seat-based 98%.
The Rule of 40 is growth rate plus profit margin. The 2026 bar is still 40%. Benchmarkit's private SaaS median is 25%; top quartile is 43%. It starts to matter around $20M ARR.
There is no single good SaaS churn rate. ChartMogul's median monthly logo churn is 6.5% below $300K ARR and 3.1% at $8–15M. Recurly's SaaS median is 3.22% annual. Benchmarkit GRR sits at 84%.
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Product-led growth is a GTM motion where the product drives acquisition, conversion, and expansion. When it beats sales-led, the metrics, and a 30-day test.
Median B2B SaaS CAC payback is 16 months in 2026. Blended CAC ratio is $1.30 of S&M per $1 ARR; new-name is $1.63. Channel CPL, LTV:CAC, and how to calculate fully loaded CAC.
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