Essential metrics for recurring revenue
CAC (Customer Acquisition Cost), is the cost to gain a new customer.
MRR (Monthly Recurring Revenue) is the monthly recurring revenue or MRR is how much you charge a client per month.
Length is the number of months a customer pays a subscription
LTV (Customer Lifetime Value) is calculated by
- Multiplying MRR by Length, and minus the CAC
- (MRR x Length) – CAC = LTV