Unit Economics Tool

Revenue and costs per customer, turned into monthly cash flows, lifetime value, LTV/CAC and CAC payback. Mix recurring, one-time and repeat transaction revenue.

Revenues

Revenue line 1, per unit

Average revenue per order, a subscription fee, a maintenance fee and so on

Revenue line 1, type

Recurring repeats every billing period, one time happens once, transaction repeats on its own cycle

Revenue line 2, per unit

Revenue line 2, type

Revenue line 3, per unit

Revenue line 3, type

Cost of sales

Cost of sales 1, % of revenue

Cost of sales 1, type

Cost of sales 2, % of revenue

Cost of sales 2, type

Cost of sales 3, % of revenue

Cost of sales 3, type

Discounts

Discount on the first recurring billing

Total discount over the first billing period

Discount on the first transaction

Recurring

Billing period, months

Separates cash collection from revenue; 12 bills annually

Churn period, months

Length of a renewal cycle: 1 for monthly, 12 for annual

Annual growth in gross margin per unit

Churn per period

Share of customers who don't renew each churn period

One time

Month the one-time revenue lands

0 for an upfront fee

Transaction

Months between repeat transactions

0 for a single transaction that never repeats

Annual growth in gross margin per transaction

Churn per transaction period

Share of customers who don't buy again

Costs and discounting

Discount rate, annual

Used to discount future cash flows in the LTV

Customer acquisition cost (CAC)

Retention and expansion cost, per renewal

Repeat and expansion cost, per repeat transaction

Lifetime value (LTV)

$143.66

LTV / CAC

2.21

CAC payback, months

2.89

Average customer lifetime, months

Lifetime value

LTV, recurring: $143.66
LTV, one time: $0
LTV, transaction: $0

Transactions

Repeat transactions per year: 0
Lifetime transactions: 0

Gross margin per unit

Gross margin per period, recurring, less retention cost: $22.50
Gross margin, one time: $0
Gross margin per transaction, less repeat cost: $0

By month

This runs the same math as the spreadsheet, checked against the workbook on every change. When you want the formulas, download the workbook with your inputs, or get the model with its docs and the Google Sheets version.