Unit Economics Explained: CAC, LTV, and Payback Period
Everything founders need to know about unit economics. How to calculate CAC, LTV, and payback period, with benchmarks VCs use to evaluate your business.
Quick Answer
Everything founders need to know about unit economics. How to calculate CAC, LTV, and payback period, with benchmarks VCs use to evaluate your business.
Unit economics answer the fundamental question: Does your business make money on each customer?
When investors talk about a "healthy business model," they’re usually talking about a small set of unit economics: CAC, LTV, and payback period.
Customer Acquisition Cost (CAC)
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