Unit Economics Calculator
Calculate revenue, variable costs, gross profit, contribution margin, and LTV:CAC for every unit or customer.
Enter Your Numbers
How this calculator works
Unit economics is the direct revenues and costs associated with one unit of business — one customer, one product, one transaction. Positive unit economics (LTV > CAC) is a prerequisite for a scalable business. Negative unit economics means you lose money on every customer and cannot grow your way to profitability.
Contribution margin = Revenue − Variable cost | LTV = CM × Repeat purchases | Payback = CAC ÷ CM per purchase | LTV:CAC = LTV ÷ CAC
Last updated: March 2026 · Rates and slabs updated for FY 2025-26
Positive unit economics first
Raise growth capital only after unit economics are positive. Scaling negative unit economics accelerates losses.
Cohort analysis reveals truth
Your average LTV hides the fact that 2020 cohorts might be 3× better than 2024 cohorts. Analyse by cohort.
Variable cost creep is dangerous
As you scale, variable costs often increase (logistics, support tickets, fraud). Monitor per-unit costs at every growth stage.
Frequently Asked Questions
Raise growth capital only after unit economics are positive. Scaling negative unit economics accelerates losses.
Your average LTV hides the fact that 2020 cohorts might be 3× better than 2024 cohorts. Analyse by cohort.
As you scale, variable costs often increase (logistics, support tickets, fraud). Monitor per-unit costs at every growth stage.