Unit economics: Unpacking LTV & CAC

Rachel White
9 min readOct 5, 2020

Anyone who invests in or works in mgmt of tech companies will be familiar with these. They’re also not metrics governed by any accounting rules (they’re a little too new for that). LTV is Life Time Value, CAC is Customer Acquisition Cost.

There’s many different ways to measure them, much of which depends on your business model.

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