LTV/CAC Projection Tool for Startup Founders

A Python-based Excel generator for tracking and optimizing Customer Acquisition Cost (CAC) and Lifetime Value (LTV) metrics for B2C hardware startups, particularly those developing wearable health tech similar to Whoop bands.

Why This Matters for Founders

Successful startups need to ensure their Customer Acquisition Cost (CAC) is significantly lower than the Lifetime Value (LTV) of their customers. This tool helps you:

✅ Track marketing efficiency across multiple channels
✅ Forecast customer acquisition costs over a 12-month period
✅ Calculate accurate LTV/CAC ratios to guide marketing investments
✅ Identify your most cost-effective channels with clear recommendations
✅ Make data-driven decisions about your marketing budget allocation

Features

• Monthly projection for Customer Acquisition Cost (CAC) across different marketing channels
• Lifetime Value (LTV) calculations based on ARPU, retention rate, and gross margin
• LTV/CAC ratio analysis by channel with automatic effectiveness ratings
• Summary dashboard with key metrics for quick executive overview
• Customizable parameters for budget and customer metrics
• Forecasting for Meta Ads, Google Ads, YouTube Influencers, Twitter Influencers (easily extensible)

Screenshots

[Note: Add screenshots of the Excel sheets here for visual appeal]

Requirements

• Python 3.x
• pandas
• openpyxl

Setup

1. Clone this repository:

git clone https://github.com/berkozero/LTVCAC.git
cd LTVCAC

2. Create and activate a virtual environment:

python3 -m venv ltvcac_env
source ltvcac_env/bin/activate  # On Windows: ltvcac_env\Scripts\activate

3. Install the required packages:

pip install pandas openpyxl

Usage

Run the script to generate the Excel projection:

python ltvcac_projections.py

This will create an Excel file called ltvcac_projection.xlsx in the current directory.

Customizing Parameters

You can modify the script to customize:

• Monthly marketing budget (default: $10,000)
• ARPU - Average Revenue Per User (default: $150)
• Channel allocation percentages
• Retention rate (default: 90%)
• Conversion rates by channel
• CTR (Click-Through Rate) by channel

Excel Output Explained

The generated Excel file contains three sheets:

1. CAC Projections - Detailed monthly projections for each marketing channel
2. LTV Calculations - LTV formulas and channel-by-channel comparison
3. LTV-CAC Dashboard - Executive summary with key metrics and channel performance ratings

Example Usage with Custom Parameters

To generate a projection with custom parameters:

if __name__ == "__main__":
    create_ltvcac_projection(
        output_file='custom_projection.xlsx',
        monthly_budget=15000,  # $15,000 monthly budget
        arpu=200,              # $200 average revenue per user
        retention_rate=0.85    # 85% monthly retention
    )

Why Track LTV/CAC?

• Rule of thumb: Successful startups typically aim for LTV/CAC ratio > 3
• Fundraising: Investors look for healthy LTV/CAC ratios as proof of sustainable growth
• Cash efficiency: Optimize your marketing spend for maximum return
• Channel optimization: Identify which marketing channels deliver the best ROI

Contributing

Feel free to customize this tool for your specific needs. You can extend it by adding:

• More marketing channels
• Additional metrics (payback period, MRR growth, etc.)
• Visualizations and charts
• Different LTV calculation models
• Integration with marketing APIs for real-time data

License

This project is licensed under the MIT License - see the LICENSE file for details.

About the Author

This tool was created by Berk Ozer to help founders make smarter marketing decisions. Connect with me on LinkedIn or follow me on Twitter.

Keywords

startup metrics, LTV/CAC ratio, customer acquisition cost, lifetime value, B2C metrics, hardware startup, wearable tech, marketing efficiency, customer economics, unit economics, Meta Ads, Google Ads, influencer marketing, startup founder tools, marketing optimization