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