Model your business economics with precision. Calculate CAC, LTV, payback periods, and ROAS for both SaaS subscriptions and e-commerce businesses.
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Enter your basic business metrics to calculate unit economics
Total marketing spend per month
Number of customers acquired monthly
Average monthly revenue per customer
How long customers stay on average
Your key business metrics and health indicators
Enter your metrics to see results
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Follow this step-by-step guide to get accurate results
Select between subscription (SaaS/apps) or one-time payment (e-commerce) models. Each has different calculation methods.
Pro Tip: If you have both models, calculate them separately for clearer insights
Enter your advertising spend, impressions, click rates, and conversion data. Be as accurate as possible with recent data.
Pro Tip: Use data from your best-performing channel first, then expand to other channels
Input your subscription prices, transaction fees, product costs, and operational expenses. Include all variable costs.
Pro Tip: Don't forget hidden costs like payment processing, customer support, and refunds
Set your churn rates and repeat purchase behavior. This heavily impacts LTV calculations.
Pro Tip: Use cohort data if available - first-month churn is usually higher than later months
Review your CAC, LTV, LTV:CAC ratio, and payback period. Look for improvement opportunities.
Pro Tip: Healthy SaaS: LTV:CAC > 3:1, Payback < 12 months. E-commerce: LTV:CAC > 2:1
Test scenarios by adjusting conversion rates, pricing, or costs. Focus on metrics with biggest impact.
Pro Tip: Small improvements in retention often have bigger impact than acquisition improvements
Unit economics analysis examines the direct revenues and costs associated with a particular business model on a per-unit basis. It helps you understand whether each customer acquisition is profitable by calculating metrics like Customer Acquisition Cost (CAC), Lifetime Value (LTV), and payback periods.
Understanding unit economics is crucial for sustainable business growth. It tells you whether your business model is fundamentally profitable, helps you make informed marketing spend decisions, and identifies the key levers for improving profitability. Without solid unit economics, businesses often burn cash unsustainably.
Select your business model (subscription or one-time), input your marketing funnel data, set your pricing and costs, configure retention rates, and analyze the calculated metrics. Focus on improving the metrics with the biggest impact on profitability.
CAC is the total cost to acquire one paying customer, including all marketing and sales expenses. It's calculated by dividing your total acquisition costs by the number of customers acquired in that period. This helps you understand if your marketing is profitable.
LTV is the total revenue you expect from a customer over their entire relationship with your business. For subscriptions, it's (Monthly Revenue per User ÷ Monthly Churn Rate). For e-commerce, it includes repeat purchases over the customer lifecycle.
For SaaS businesses, aim for 3:1 or higher (LTV should be at least 3x your CAC). For e-commerce, 2:1 is often acceptable due to shorter customer lifecycles. Higher ratios indicate more profitable customer acquisition.
ROAS (Return on Ad Spend) measures revenue generated per dollar spent on advertising. ROI includes all costs and measures profit. ROAS focuses on marketing efficiency, while ROI shows overall business profitability.
For SaaS, aim for 12 months or less to recover your CAC. For e-commerce, 3-6 months is typical. Shorter payback periods mean faster cash flow recovery and ability to reinvest in growth.