What LTV and CAC measure, how to calculate them properly, and how to read the ratio and payback period together. If the topic is new to you, start with unit economics.
Start here. The four numbers that decide whether growth creates value: LTV, CAC, the ratio and payback, and how they fit together.
What a customer is worth over the whole relationship. Formulas for subscription, e-commerce and AI products, built on gross margin rather than revenue.
What it really costs to win a customer once salaries, tools and overhead are counted, and where to look first when it's too high.
How to read the ratio by stage and business model, and why 3:1 is a starting point rather than a target.
How many months it takes to earn back what you spent on a customer, and why a good ratio can still run you out of cash.