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Unit Economics Calculator (CAC / LTV)

Do you make more from a customer than it costs to acquire one? Enter your acquisition spend and retention numbers to get CAC, LTV, the LTV:CAC ratio, and payback months — with plain-English verdicts. Everything runs in your browser.

CAC = monthly sales + marketing spend ÷ new customers per month LTV = ARPU × gross margin ÷ monthly churn rate LTV : CAC = LTV ÷ CAC CAC payback = CAC ÷ (ARPU × gross margin) [months] benchmarks: LTV:CAC ≥ 3 healthy · 1–3 thin · < 1 losing money payback ≤ 12 months is the common SaaS target

About this tool

This uses the textbook SaaS definitions: CAC is fully-loaded sales and marketing spend divided by customers acquired, and LTV is gross-margin-adjusted revenue divided by monthly churn — which is just the geometric-series result of a customer surviving churn month after month. The 3:1 ratio and 12-month payback benchmarks are the ones investors most commonly quote; they are rules of thumb, not laws, and capital-efficient bootstrapped businesses can thrive well outside them.

Be honest with the inputs and the outputs will be honest with you: blended churn hides cohort differences, ARPU drifts as your mix shifts, and CAC measured in a month of heavy spend overstates the steady state. Nothing you type leaves the page — no server, no upload, no tracking of tool inputs.

Found this useful? 113 free, browser-only tools by Yuvrajsinh Jadav — an engineer who ships production AI systems. No account, nothing sent anywhere.