Unit Economics Calculator
Is each customer actually profitable? Enter your revenue per account, gross margin, churn and CAC to get LTV, the LTV:CAC ratio and how many months until a customer pays back their acquisition cost.
Per customer
What good unit economics look like
LTV = monthly gross profit per customer ÷ churn (ARPA × gross margin ÷ churn). The two rules of thumb investors use: an LTV:CAC of 3× or higher, and a CAC payback under ~12 months. Below 3× you're spending too much to acquire relative to what a customer is worth; a long payback ties up cash and lengthens your runway. The curve shows cumulative gross profit from one customer, it starts at minus your CAC and crosses zero at the payback month.
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