Worked problem
Unit Economics (CAC:LTV) Example
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Example scenario
Input: CAC = $320, ARPU = $65, Gross margin = 70%, Churn = 4%/mo
Output: LTV ≈ $1,138, LTV:CAC ≈ 3.56, Payback ≈ 4.9 months
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Practice prompts
- Change one value from the example to see how the output shifts.
- Explain each step to a friend or in your notes to reinforce understanding.
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