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Unit Economics Calculator

Operations & HR Finance

Intermediate20-30 minutes8 inputs
ClaudeChatGPTGemini

Quick Answer

Enter your revenue per customer, churn rate, CAC, and gross margin. Paste into Claude or ChatGPT. Get a complete unit economics analysis with LTV/CAC ratio payback period and improvement recommendations.

What You Get

A complete unit economics analysis covering LTV calculation, CAC breakdown, LTV/CAC ratio, payback period, gross margin per customer, contribution margin, and specific recommendations to improve each metric.

Who Is This For

Founders validating their business model, CFOs presenting unit economics to investors and boards, and growth teams optimizing CAC and LTV.

About This Template

Unit economics are the fundamental financial drivers of a business β€” they show whether the core model makes money at the level of a single customer or transaction. Strong unit economics mean the business becomes more profitable as it scales. Weak unit economics mean scaling makes losses worse. This template guides founders and finance teams through entering their core metrics, then uses AI to calculate complete unit economics, interpret what the numbers mean for the business model, and identify the highest-leverage improvements.

Fill In Your Details

1
Company NameRequired

Your company name

2
Average Monthly Revenue Per CustomerRequired

e.g. $850 per month average across all customers

3
Gross Margin PercentageRequired

e.g. 75 percent gross margin

4
Monthly Churn RateRequired

e.g. 2 percent monthly churn

5
Customer Acquisition CostRequired

e.g. 1400 total blended CAC across all channels

6
CAC Breakdown by Channel

e.g. Inbound $800 CAC, Outbound $2200 CAC, Partner $600 CAC

7
Average Sales CycleRequired

e.g. 30 days average, 90 days for enterprise

8
Average Monthly Expansion Revenue Per Customer

e.g. $45 per month in upsell and cross-sell on average, or 0 if none

Gather these details then use them to fill in the prompt below.

AI Prompts

1

Generate unit economics analysis

Paste this prompt into Claude or ChatGPT with your metrics filled in.

You are a venture capital analyst evaluating the unit economics of a SaaS business. Using the data below, produce a comprehensive unit economics analysis.

Company: [company_name]
Average monthly revenue per customer: [average_revenue_per_customer]
Gross margin: [gross_margin] percent
Monthly churn: [monthly_churn] percent
CAC: [cac]
CAC by channel: [cac_breakdown]
Sales cycle: [sales_cycle]
Monthly expansion revenue per customer: [expansion_revenue]

Calculate and produce:
1. LTV Calculation β€” using LTV = (ARPU x Gross Margin) divided by Monthly Churn Rate
2. CAC Analysis β€” blended CAC and by channel if provided
3. LTV/CAC Ratio β€” and interpretation (less than 1 is broken, 1-3 is marginal, 3+ is healthy, 5+ is strong)
4. CAC Payback Period β€” months to recover CAC from gross profit
5. Gross Profit Per Customer β€” monthly and annual
6. Contribution Margin β€” including CAC amortization
7. Unit Economics Assessment β€” is this business model fundamentally sound at scale?
8. Improvement Recommendations β€” the highest-leverage actions to improve LTV/CAC

Show all formulas and calculations.

Sample Output

This is an example of what AI produces when you use this template.

Unit Economics Summary

LTV: ($850 ARPU multiplied by 75% gross margin) divided by 2% monthly churn equals $31,875. CAC: $1,400 blended. LTV/CAC ratio: $31,875 divided by $1,400 equals 22.8x. CAC Payback Period: $1,400 divided by ($850 multiplied by 75%) equals 2.2 months. Gross profit per customer per month: $637.50. Annual gross profit per customer: $7,650.

Unit Economics Assessment

These unit economics are exceptional. An LTV/CAC of 22.8x is well above the 3x threshold considered healthy for SaaS. A 2.2-month CAC payback period is among the fastest in the industry β€” it means the business recovers its customer acquisition investment in just 2 months and then generates gross profit for years. The 2 percent monthly churn (22.5 percent annually) is the primary risk factor β€” if churn can be reduced to 1.5 percent, LTV increases by 33 percent to $42,500 and LTV/CAC improves to 30.4x. The highest-leverage improvement is churn reduction: every 0.1 percentage point reduction in monthly churn adds approximately $3,187 to LTV at current ARPU and margin.

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