Unit Economics Calculator

Calculate Customer Lifetime Value (LTV), Customer Acquisition Cost (CAC), and determine if your business model is sustainable.

Customer Lifetime Value
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LTV:CAC Ratio
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CAC Payback Period
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Average Customer Lifetime
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Unit Economics FAQ

What is a good LTV:CAC ratio?
A ratio of 3:1 or higher is generally considered healthy for SaaS businesses. Below 1:1 means you're losing money on every customer.
How is LTV calculated?
LTV = ARPU x (1 / Churn Rate) x Gross Margin. This gives the total gross profit you can expect from an average customer.
What is an acceptable payback period?
For most SaaS companies, a CAC payback period of 12 months or less is ideal. Over 18 months can strain cash flow.