LTV to CAC
ltv_cacCustomer lifetime value (monthly revenue per account x gross margin / monthly churn) compared with customer acquisition cost. Returns LTV, the LTV:CAC ratio and CAC payback months. Around 3:1 or better is a commonly cited target. Use cac_payback when you only need the payback period. Guide: https://raziel.co/learn/unit-economics-early-stage-startups
Input Schema
| Name | Required | Description | Default |
|---|---|---|---|
| cac_usd | Yes | Fully loaded cost to acquire one customer (sales and marketing spend / new customers). | |
| arpa_monthly_usd | Yes | Average revenue per account per month. | |
| gross_margin_pct | Yes | Gross margin in percent (80 = 80%). | |
| monthly_churn_pct | Yes | Monthly customer churn in percent (2 = 2%). Must be above 0. |