Free tool

Unit Economics Calculator

Find out what a customer is really worth, what they cost you to win, and whether the gap between the two is big enough to grow on. No sign-up, no jargon — plain-English answers as you type.

Your numbers

Estimates are fine. You can refine them later.

What kind of business is this?

Customers buy again and again — ecommerce, services, most SMEs.

Average order value
$

What a typical customer spends in one purchase.

Purchase frequency

How often the same customer buys. Buying once every two months = 0.5 per month.

Customer lifespan

How long they keep buying before they drift away.

Gross margin
%

Not sure? Switch to price and cost below and we'll work it out.

Acquisition — same period for both
Marketing spend (last month)
$
New customers (last month)
LTV : CAC
Below 1 is losing money · 3 to 5 is the healthy target.
Lifetime value
Gross profit from one customer, not revenue.
Cost to acquire
What one new customer costs you.
Profit per customer
Lifetime value minus what you paid to win them.
Payback period
Under 6 months is strong · over 12 strains cash.
Gross margin
Baked into every number above, so nothing is overstated.
The verdict

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Everything updates as you type. Nothing is stored or sent anywhere.

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Good numbers deserve a better structure

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Under the hood

How this is calculated

Gross margin
(Price − Cost per unit) ÷ Price
Customer lifespan
1 ÷ Churn rate (when you give us churn)
LTV (repeat purchase)
Order value × Purchase frequency × Lifespan × Gross margin
LTV (subscription)
(Monthly revenue × Lifespan × Gross margin) + (Setup fee × Gross margin)
CAC
Marketing spend ÷ New customers acquired
LTV : CAC
LTV ÷ CAC
Profit per customer
LTV − CAC
Payback
(CAC − setup fee profit) ÷ monthly gross profit per customer
Time handling
Everything is converted to a monthly basis first

Two things people get wrong

Using revenue instead of profit. Lifetime value must be built on gross profit. Calculate it on revenue and a broken business will look healthy. Margin is baked in here — you can't skip it.

Blended versus paid acquisition cost. If some customers arrive through word of mouth or search, dividing all your spend by all your new customers understates what paid traffic really costs. For a truer figure, use only paid spend and only the customers it produced.