Calculate unit economics including revenue per unit, cost per unit, gross margin, contribution margin, CAC, LTV, LTV to CAC ratio, CAC payback period, and profit per unit. Use this calculator to see whether each customer, order, or product unit is profitable.
Unit profit:
Enter revenue per unit and all variable unit costs to calculate contribution margin, gross margin, and unit profit.
LTV and CAC:
Enter purchases per customer and customer acquisition cost to calculate lifetime value and LTV to CAC ratio.
CAC payback:
Estimate how many purchases or months are needed to recover customer acquisition cost.
Target unit economics:
Calculate the LTV needed to meet a target LTV:CAC ratio.
A unit economics calculator helps evaluate whether each product, order, subscriber, customer, or transaction is profitable.
It is useful for pricing, ecommerce, SaaS, subscriptions, marketing budgets, customer acquisition planning, and profitability analysis.
Your result shows unit profit, contribution margin, gross margin, lifetime value, customer acquisition cost, LTV to CAC ratio, CAC payback, and target LTV. Strong unit economics usually means each customer or unit creates enough margin to cover acquisition costs and contribute to profit.
Unit economics measure revenue, cost, and profit at the level of one product, order, customer, user, or transaction.
Subtract variable cost, fulfillment cost, and payment or platform fees from revenue per unit.
A higher LTV to CAC ratio means customer value is greater than acquisition cost. Many businesses use 3:1 as a common target, but the right target depends on the business model.
Unit economics help show whether growth is sustainable. If each unit or customer loses money, more sales may increase losses instead of profit.