Startups & SaaS
Unit Economics Calculator
See per-customer profit and the volume needed to break even.
Unit Economics Calculator
All math runs locally in your browser. Nothing is uploaded.
How it works
Unit economics breaks a business down to the single transaction: how much profit does one customer generate, and how much did they cost to win. The gap between LTV and CAC is the per-customer contribution that must pay for the entire fixed cost structure.
When LTV minus CAC is healthy, every additional customer strengthens the business; when it is negative, growth multiplies losses. This tool puts the two numbers side by side so the verdict is instant.
Formula
Unit profit = LTV − CAC
LTV : CAC = LTV / CAC. Unit profit must cover your share of fixed costs before the business nets positive.
Worked example
Example: price $49 a month, LTV $600, CAC $150. Unit profit = $450 per customer, and the ratio is 4.0. On 1,000 customers the model contributes $450,000 toward fixed costs before any profit.
WORKED EXAMPLE — DEFAULT INPUTS
What to know
Unit economics is the bridge between a product idea and a business. A great product with negative unit economics scales into losses; a mediocre product with strongly positive unit economics can be a solid company. The per-customer math decides, and it is worth revisiting every time pricing or costs change.
Break-even planning starts from here: once you know the unit profit, divide your monthly fixed costs by it to find the customer count that covers the bills. That single number turns abstract strategy into a concrete sales target the team can chase.
Recheck the unit math after every price or retention change; a small improvement in either driver lifts the per-customer profit more than most cost cuts ever will.
FAQ
What if LTV minus CAC is negative?
Every customer destroys value. Fix the model before scaling: raise price, extend retention, or cut acquisition cost until the gap turns positive.
How does unit economics relate to break even?
Break even happens when total customers times unit profit covers fixed costs. Strong unit economics makes the fixed-cost hurdle easier to reach.
Should LTV include gross margin?
Strictly yes: multiply price by gross margin before projecting lifespan. This tool keeps LTV as an input so you can feed it the margin-adjusted number.
How often should I recheck unit economics?
Whenever pricing, retention or channel costs shift. It is the fastest way to see whether a change helps or hurts the model.