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.
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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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