Free Unit Economics Calculator

Calculate Customer Acquisition Cost (CAC), Lifetime Value (LTV), LTV:CAC ratio, and payback period. Essential metrics for SaaS and subscription businesses.

Calculate Unit Economics

What You Get

  • Customer Lifetime Value (LTV)
  • LTV:CAC ratio with health indicator
  • CAC payback period in months
  • Average customer lifetime
  • Visual CAC vs LTV comparison chart

Key Formulas

LTV = ARPU x (1 / Churn) x Gross Margin

LTV:CAC Ratio = LTV / CAC

Investors look for LTV:CAC of 3x or higher. Our calculator tells you exactly where you stand.

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Unit Economics FAQ

What are unit economics?
Unit economics measure the revenue and costs associated with a single customer. Key metrics include CAC and LTV.
What is a good LTV:CAC ratio?
A ratio of 3:1 or higher is generally considered healthy. Below 1:1 means you lose money on every customer.
How is LTV calculated?
LTV = ARPU x (1 / Churn Rate) x Gross Margin. This gives the total gross profit expected from an average customer.