Unit economics calculator

Find out whether each sale makes money once the cost of winning the customer is included. Use any period — month for subscriptions, order for repeat buyers. Nothing you type is saved or sent anywhere.

Price per period ($)

Variable cost per period ($)

Cost to acquire a customer ($)

Average lifetime (periods)

Contribution margin: $60
Margin %: 60%
Lifetime value (LTV): $1,200
LTV : CAC: 4 : 1
Payback period: 5 periods

LTV:CAC of 3 or more is generally considered healthy.

How it is calculated

Contribution margin = price − variable cost. LTV = contribution margin × lifetime.

LTV:CAC = LTV ÷ acquisition cost. Payback = acquisition cost ÷ contribution margin.

Read the full explanation in unit economics explained, or try the churn rate calculator.