Payback is one division: acquisition cost over the gross margin a customer throws off each month — and churn decides whether the account survives long enough to finish paying it.

1200 USD
100 USD/month
78 %
2 %/month
24 month
Months to recover acquisition cost15.38
Ltv cac ratio3.25
Life after payback34.62
-60000-40000-200000200000200004000060000Lifetime ceiling: all the margin this customer will ever returnBreakeven: acquisition cost recovered
Cumulative net at horizon

Cutting churn does nothing to shorten payback — it only extends the tail after it, which is why a fast-payback business with heavy churn can still return less than it spends.

Interactive artifact by Delineo