LTGP:CAC Simulation
Adjust business levers and instantly see the impact on your LTV:CAC ratio
Customer Acquisition Cost
$1,248.89
Per customer acquired
Lifetime Gross Profit
$8,037.18
5-year customer value
LTV:CAC Ratio
6.4:1
⚠ NEEDS IMPROVEMENTTarget: 12:1 or higher
Lead Generation
Door Knocking Operations
Leads/Shift
0.56
Weekly Pay
$700.00
Cost Per Lead
$248.89
Sales
Commission Structure
Sales Commission Per Sale
$1,000.00
Total CAC
$1,248.89
$248.89 lead cost
+ $1,000.00 commission
One-Time Install
Installation Gross Profit
Total COGS
$2,350.00
One-Time GP
$7,650.00
Recurring Subscription
5-Year Model with Churn
Annual Churn Rate
%
Retention Rate: 85.0%
Tier 1 - Basic 30.0% take rate
5-Year GP: $82.33
Tier 2 - Premium 30.0% take rate
5-Year GP: $304.85
Tier 3 - No Membership
% take rate
No recurring revenue from this segment
Total Recurring GP (5 Years)
$387.18
Upsells
Future Growth Opportunity
Total Upsell GP (5 Years)
$0.00
Total LTGP
$8,037.18
$7,650.00 install
+ $387.18 recurring
+ $0.00 upsells
5-Year Recurring Revenue Breakdown
| Tier | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | 5-Year Total |
|---|---|---|---|---|---|---|
| Basic (30.0%) | $22.20 | $18.87 | $16.04 | $13.63 | $11.59 | $82.33 |
| Premium (30.0%) | $82.20 | $69.87 | $59.39 | $50.48 | $42.91 | $304.85 |
| Total Recurring GP | $104.40 | $88.74 | $75.43 | $64.11 | $54.50 | $387.18 |
📝 Key Assumptions
- • Commission is only paid on closed sales, not on all leads
- • Churn compounds annually at 15.0% (meaning 85.0% retention year-over-year)
- • 5-year time horizon for recurring revenue calculation
- • No discounting of future cash flows (simple sum, not NPV with discount rate)
- • One service visit per year for maintenance plan customers