What the calculation measures
Use gross profit, not revenue alone, when estimating LTV from recurring customers.
How to interpret the result
Compare cohorts and channels separately because blended CAC can hide expensive acquisition sources.
Run scenarios instead of one answer
Change the most uncertain input and compare outcomes. A calculator is most useful when it shows sensitivity, not when one estimate is treated as a guarantee.
Limits and assumptions
Retention behavior is rarely perfectly constant; cohort-based LTV is more reliable when enough data exists.