The health check for growth spend.
A worked example
Starting figures
- Monthly revenue per customer
- $90
- Gross margin
- 78%
- Monthly churn
- 3%
- Cost to acquire
- $850
What it returns
- LTV:CAC
- 2.75:1
- Lifetime value
- $2,340
- Payback
- 1 yr 1 mo
- Target CAC at 3:1
- $780
How to read the results
With the defaults above, ltv:cac works out at 2.75:1.