Unit Economics Calculator (CAC / LTV)
See whether you make or lose money on each customer. Calculate Customer Acquisition Cost, Lifetime Value, payback period, and the all-important LTV:CAC ratio.
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The numbers explained
CAC (Customer Acquisition Cost) is your total sales and marketing spend divided by the number of new customers it produced. LTV (Lifetime Value) is the total gross profit a customer generates before they leave — calculated here as monthly revenue × gross margin ÷ monthly churn.
The ratios investors care about
A healthy business has an LTV:CAC ratio of 3 or higher — every dollar spent acquiring a customer returns at least three in gross profit. Below 1 means you pay customers to use your product. The payback period tells you how many months of gross profit it takes to recover the acquisition cost; under 12 months is strong for subscription businesses.
Go deeper with our guide to unit economics in the Knowledge Hub.
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