What is the CAC payback period?

The CAC payback period is the time in months required for a customer to generate enough gross profit to pay back the initial marketing cost spent to acquire them.

What is a good LTV to CAC ratio?

A standard target LTV to CAC ratio is 3.0x or higher. A ratio below 1.0x means the business is losing money on every customer acquired over their lifespan.

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LTV to CAC & Payback Period Calculator

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