Unit economics
4 cards · about a minute · 28 October 2026
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Unit economics asks: do you make money on each customer?
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CAC
Cost to win one customer
Ads, sales calls, discounts: it all adds up.
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LTV
What a customer pays you over time
Healthy businesses aim for LTV of at least 3× CAC.
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If each customer loses money, growing faster loses more.
Test yourself
A common rule of thumb: a customer's lifetime value should be at least…
- 1× what it cost to win them
- 3× what it cost to win them
- 10× what it cost to win them
Show the answer
3× what it cost to win them. Healthy businesses aim for LTV of at least 3× CAC.
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