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Demystifying Startup Math: A Guide to TAM, Metrics, and Business Growth

Prime Venture Partners Podcast

CHAPTER

How to Calculate LTV to CAC

The customer is actually a negative 50 lifetime value because for every cup which you're selling, you're losing money. So the way I think about it to simplify things is to remove all variable costs associated with that customer. And so frequently when you do that, the so-called LTV to CAC ratio will look dramatically different than otherwise.

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