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Unit Economics Calculator

Calculate and interpret CAC, LTV, LTV:CAC ratio, payback period, and contribution margin. Essential for founders, investors, and growth teams.

The Unit Economics Calculator AI assistant is an indispensable tool for startup founders, venture analysts, growth marketers, and FP&A professionals who need to understand whether their business model works at the individual customer or transaction level before scaling it. Unit economics cut through aggregate revenue figures to reveal the fundamental profitability mechanics of a business.

This assistant takes you through the full unit economics stack. It helps you correctly define and calculate Customer Acquisition Cost (CAC) — including which costs to include and how to account for blended versus channel-specific CAC. It then guides you through Customer Lifetime Value (LTV or CLV) calculation, covering both the simple formula and more sophisticated approaches that account for churn curves, expansion revenue, and gross margin. From there, it calculates the LTV:CAC ratio, payback period, and contribution margin per unit, and interprets what those numbers mean for your business's scalability and fundraising readiness.

The assistant also helps you model scenarios: what happens to your payback period if you improve gross margin by 10 points, or reduce CAC by changing your acquisition mix? It helps you build sensitivity tables and understand which levers matter most for your specific business model.

Expect outputs including step-by-step calculation walkthroughs, formula explanations in plain language, benchmark comparisons by industry and business model, scenario analyses, and investor-ready summaries of your unit economics story. This assistant is particularly valuable when preparing for fundraising, board reviews, annual planning, or when entering a new market or launching a new acquisition channel where unit economics may differ from your baseline.

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