Unit Economics Calculator

Calculate LTV, CAC Payback, LTV:CAC, NRR, Magic Number and Burn Multiple with a month-by-month projection.

Outputs

  • LTV, CAC payback, LTV:CAC, NRR & Magic Number
  • Burn Multiple and monthly projection
  • CSV download

Enter assumptions

If New Customers blank, we compute via S&M ÷ CAC.
Net ARPU uplift (upsell/cross-sell).

Unit Economics – FAQs

Unit economics measure profitability per 'unit' (e.g., per customer) after direct costs. For SaaS, typical metrics are LTV, CAC, LTV:CAC, CAC payback, Net Revenue Retention, Magic Number and Burn Multiple.

We use a simplified SaaS model: LTV ≈ (ARPU × Gross Margin) ÷ (Monthly churn + Monthly discount). Payback (months) = CAC ÷ Monthly contribution per customer (ARPU × Gross Margin).

Burn Multiple ≈ Net Burn ÷ Net New ARR. Lower is better. We estimate Net Burn as (Opex + Sales & Marketing) − Gross Profit; Net New ARR is 12 × change in MRR.

NRR captures revenue from a cohort after churn and expansion. We estimate a monthly NRR factor as (1 − churn + expansion rate), and show the implied 12-month NRR.

No. This tool is for education and planning. Consult a qualified finance professional before making decisions.

Why this output matters

For GTM and finance teams, LTV, CAC payback, LTV:CAC, NRR, Magic Number and Burn Multiple show whether growth is efficient, durable and affordable. These outputs help decide how much to spend on acquisition, when to scale sales and marketing, and where retention or burn is weakening the model.

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