Unit Economics Calculator for LTV, CAC, Margin and Payback

How to Calculate LTV, CAC, Margin and Payback with the Unit Economics Calculator

Calculate contribution margin, customer LTV, CAC, LTV:CAC ratio, and acquisition payback period to evaluate SaaS or ecommerce unit economics.

LTV:CAC = gross-profit lifetime value / acquisition cost

Balance LTV:CAC with payback time; a high ratio can still hide slow cash recovery.

Use gross-profit LTV, not revenue LTV, when comparing against CAC. Inputs and calculations stay in this browser.

Analyze customer profitability with LTV:CAC ratio, payback period, and contribution margin calculations. Essential for sustainable growth.

Customer Lifetime Value ($)

Customer Acquisition Cost ($)

Avg Order Value ($)

Orders Per Year

Customer Lifespan (years)

Gross Margin (%)

Customer Acquisition Cost ($)

Monthly Revenue/Customer ($)

Gross Margin (%)

CAC ($)

Revenue Per Unit ($)

Variable Cost/Unit ($)

CAC Per Unit ($)

LTV:CAC Ratio

Healthy: >3:1

Excellent: >5:1

CAC Payback

Healthy: <12 months

Excellent: <6 months

Gross Margin

Healthy: >50%

Excellent: >70%

Contribution Margin

Healthy: >30%

Excellent: >50%

Compares customer lifetime value to acquisition cost. A ratio of 3:1 or higher is considered healthy for sustainable growth.

Time to recover CAC from a customer's gross profit. Shorter payback periods mean faster capital recovery and less risk.

Revenue minus variable costs per unit. Shows how much each sale contributes to covering fixed costs and profit.