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LTV / CAC
Inputs: Monthly ARPU, gross margin, monthly churn, and CAC. Outputs: LTV and LTV/CAC ratio. Formula LTV = (ARPU × Margin) / Churn.
Inputs
Results
- LTV (Lifetime Value)$700.00
- LTV / CAC2.33x
LTV here is (ARPU × Margin) / Churn. Ideally LTV/CAC should be over 3x for SaaS financial health.