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MaidThis in startup terms: gross margin, CAC, payback, LTV

Startup Finance, 2 min read

Months to pay back CAC
Under 5
What this is
The numbers investors ask about, computed on a real business I run, from Stripe exports and my own books. I had them in service-business words (job price, labor percent, recurring clients). Here they are in startup words, with the math shown.

Skills Financial modeling, pricing

Why

Most of the roles I’m applying for ask about financial models, CAC and payback. I’ve been managing those for two years under different names. This is the translation. It took one afternoon with the Stripe export and a short script, and it told me where the next dollar should go.

The numbers

MetricHow I calculated itValueWhat it told me
Gross margin1 minus team pay as a percent of revenue. Teams are paid flat per job, so labor is the whole cost of delivery.~48% (team pay 52%, down from 57%)Five points of margin came from benchmarking rates and fixing deep-clean labor estimates, not from paying teams less.
Marketing spend, % of revenueTotal marketing spend divided by revenue, by yearYear 1: ~50%
Year 2: ~15%
Year 3: ~12%
Year one bought the customer base. Recurring clients and referrals now carry most of the growth.
Recurring share of revenueRevenue from customers with 2+ cleans, divided by total Stripe revenue~88%Most of our revenue repeats, so keeping customers matters more than winning one-time jobs.
CAC per recurring customerMarketing spend for the year divided by new recurring customers that yearYear 1: ~$1,280
Year 2: ~$545
More than halved in a year, mostly by cutting the channel that looked cheap and wasn’t (below).
CAC by channelChannel spend divided by recurring customers the channel produced, not leadsGoogle LSA: ~$650
Thumbtack, recurring-only: ~$250
LSA looked cheap at $195 per lead. Measured per recurring customer it was the expensive one. Moved the spend.
Monthly gross profit per recurring customerMedian monthly revenue per recurring customer (~$260) times gross margin~$125The unit everything else is priced against.
CAC paybackCAC per recurring customer divided by monthly gross profit per customerYear 2: about 4.4 monthsA new recurring client pays for their own acquisition in under five months. That’s what makes the 12% marketing budget possible. The goal is under 90 days on every channel.
LTV to CACLifetime gross profit per recurring customer divided by CAC~2.5x to 3xHealthy for a services business. Customers who stay past the first few months average more than a year with us and ~$5,000 in revenue each.

Stripe covers most but not all billing, so counts are scaled to the full client base. Rates and per-customer figures are as measured.

What I’d change because of this

  • Our acquisition costs are in a good place. The next dollar should go to keeping customers past their first few cleans, with a check-in after clean three and a price-lock offer around month three.
  • Get payback under 90 days on every channel. Thumbtack is already there. The next step is measuring each channel’s payback separately and cutting or fixing whatever runs long.
  • Track this quarterly instead of once. The script exists, and it’s a 10-minute refresh.