What is this tool?
Calculate your startup's core unit economics: Customer Lifetime Value, Customer Acquisition Cost, payback period, and gross margins in one place.
Unit economics determine whether your business model is fundamentally sound. A high LTV:CAC ratio means you can grow profitably. These numbers are the first thing sophisticated investors check.
How It Works
The Formula: LTV:CAC Ratio = Customer Lifetime Value / Customer Acquisition Cost (target: 3:1 or higher)
To use this tool, you'll need:
- Average revenue per customer ($)
- Gross margin (%)
- Monthly churn rate (%)
- Sales & marketing spend ($)
- New customers acquired
Why It Matters for Your Startup
Unit economics determine whether your business model is fundamentally sound. A high LTV:CAC ratio means you can grow profitably. These numbers are the first thing sophisticated investors check.
Frequently Asked Questions
What is the Unit Economics Calculator?
Calculate your startup's core unit economics: Customer Lifetime Value, Customer Acquisition Cost, payback period, and gross margins in one place.
Why should I use the Unit Economics Calculator?
Unit economics determine whether your business model is fundamentally sound. A high LTV:CAC ratio means you can grow profitably. These numbers are the first thing sophisticated investors check.
How is the Unit Economics Calculator calculated?
The Unit Economics Calculator is calculated using the following formula: LTV:CAC Ratio = Customer Lifetime Value / Customer Acquisition Cost (target: 3:1 or higher).
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