Unit Economics for PMs: CAC, LTV, Payback Period and Why They Matter

In this episode of The Product Handbook, we break down the core unit economics every product manager should understand — Customer Acquisition Cost (CAC), Customer Lifetime Value (CLV), and payback period.

You’ll learn:

• How to calculate CAC, CLV, and payback period — and why these numbers matter for product and business strategy
• What a healthy CAC-to-CLV ratio looks like and how it impacts sustainable growth
• How payback period shapes cash flow, investment decisions, and scaling strategy
• Practical ways PMs can influence these metrics through smarter acquisition, retention, and product design

If you’ve ever wanted to connect product decisions to the bigger business picture — or speak the same language as investors and execs — this episode gives you the financial foundations to do it with confidence.