Revenue from new customers (LTV)
Customer Lifetime Value. Calculated as customers × MRR × months.
Cost of acquiring new customers (CAC)
Customer Acquisition Cost. Total marketing costs ÷ new customers acquired.
LTV/CAC Ratio
Ratio of lifetime value to acquisition cost. 3:1 minimum for healthy business.
CAC Payback Period
Time to recover acquisition costs. Calculated as CAC ÷ monthly MRR.
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