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Discount Math

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1 entry 4 related topics Updated April 30, 2024

How do you calculate discount math for at-risk renewals without destroying margin?

discount-mathmargin-protectionltv-recoveryrenewal-pricingsaas-economicsApr 30

The CAC Payback Fence Discount logic hinges on one principle: LTV recovery before margin collapse. Here's the operator's framework: The Core Math Discount ceiling = (Account LTV - CAC) / ARR - Account LTV (36-month window) = ARR × NRR expan…

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