Business calculator
Unit Economics Calculator
Estimate ARPU, CAC, churn-based LTV, LTV:CAC ratio, and CAC payback period.
September 2026
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How we calculate
A transparent estimate you can inspect.
Formula
ARPU equals monthly revenue divided by active customers. CAC equals sales and marketing spend divided by new customers. Estimated LTV uses the simplified steady-state model ARPU × gross margin ÷ monthly churn. This model assumes stable ARPU, gross margin, churn, and customer behavior.
Privacy
Your values are calculated locally and are not sent to a server by this calculator.
Use with care
Results are for informational purposes, not financial, tax, legal, lending, or investment advice.
Understanding your results
ARPU, CAC, LTV, ratio, and payback are separate planning metrics with different uses.
Assumptions and limitations
- Uses a simplified steady-state churn model.
- Does not model cohorts, expansion, or retention curves.
Common questions
Before you decide
What are these results for?
Use them as planning estimates and reconcile them with your actual accounting data.
Can results be negative?
Yes. A negative profit or margin is a meaningful outcome.