RedHub AI
Quick Kit · The Math
How the math works
The channel that quietly loses money
Blended CAC is an average, and averages hide the channel spending more to win a customer than that customer will ever pay back. Here's the exact arithmetic the kit runs on every channel.
The inputs (one paid channel)
Monthly spend
$5,000
on this channel
New customers
8
acquired / month
Margin / customer
$40
gross, per month
Avg lifespan
12 mo
before they churn
($5,000 ÷ 8 customers) ÷ $40/mo margin
= $625 to acquire one customer ÷ $40 earned each month = 15.6 months to break even
Payback · one channel
15.6months
$625 to earn a customer worth $480 in margin — verdict: Cut
Its LTV:CAC is 0.77 — every $1 spent to acquire comes back as $0.77.
This one channel takes 15.6 months to pay back and returns just $0.77 for every $1 spent to acquire it. The kit runs CAC, payback, LTV and LTV:CAC on every channel and totals the monthly spend sitting in Cut channels you could reallocate today.
CAC = spend ÷ new customers; payback = CAC ÷ monthly gross margin; LTV = margin × lifespan — computed on your own estimates. A unit-economics read, not a forecast or financial advice.