Unit Economics Calculator

Calculate CAC, LTV, margins and key business metrics

Calculate Unit Economics

$ Customer Acquisition

Salaries, commissions, tools

Customer Lifetime Value

% Contribution Margin

Hosting, support, payment processing

Leave blank to calculate from COGS

Understanding Unit Economics

Key Formulas

Customer Acquisition Cost (CAC)

CAC = (Marketing + Sales Costs) ÷ New Customers

Customer Lifetime Value (LTV)

LTV = (ARPU × Gross Margin) ÷ Churn Rate

LTV:CAC Ratio

LTV:CAC = Lifetime Value ÷ Acquisition Cost

CAC Payback Period

Payback = CAC ÷ (ARPU × Gross Margin)

Healthy Benchmarks

Metric Target
LTV:CAC Ratio3:1 or higher
CAC Payback< 12 months
Gross Margin (SaaS)70-80%+
Monthly Churn (SaaS)< 5%

What the Ratios Mean

  • LTV:CAC < 1:1 — You're losing money on every customer. Unsustainable.
  • LTV:CAC 1:1 to 3:1 — Break-even or marginal. Need improvement.
  • LTV:CAC 3:1 to 5:1 — Healthy. Good balance of growth and efficiency.
  • LTV:CAC > 5:1 — Highly efficient. Consider investing more in acquisition.

Privacy & Limitations

  • All calculations run entirely in your browser -- nothing is sent to any server.
  • Results are estimates for planning purposes and should not replace professional financial advice.

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Unit Economics Calculator FAQ

What is Unit Economics Calculator?

Unit Economics Calculator is a free finance & money tool that helps you Calculate CAC, LTV, margins and unit economics metrics.

How do I use Unit Economics Calculator?

Enter your input values, review the calculated output, and adjust inputs until you reach the result you need. The result updates in your browser.

Is Unit Economics Calculator private?

Yes. Calculations run locally in your browser. Inputs are not uploaded to a server by default, and refreshing the page clears session data.

Does Unit Economics Calculator require an account or installation?

No. You can use this tool directly in your browser without sign-up or software installation.

How accurate are results from Unit Economics Calculator?

This tool applies standard formulas or deterministic processing logic for estimates. For medical, legal, tax, or investment decisions, verify with a qualified professional.

Can I save or share outputs from Unit Economics Calculator?

You can bookmark this page and copy outputs manually. Results are not persisted in your account and are typically not embedded in the URL.

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