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How to Calculate & Maintain a Healthy Customer Acquisition Cost (CAC)

ConversionXL

Here’s how you calculate LTV: [ARPC (Average Revenue Per Customer in a Month) X Gross Margin] / MRR Churn Rate. Most businesses track it on a monthly basis for both customers (Customer Churn Rate) and monthly recurring revenue (MRR Churn Rate). You’ll find examples of using both customer and MRR churn rates.