The Crimson Bench

Finance · Free Interactive Tool

Unit Economics Calculator

Find out if every sale actually makes you money.

Your Numbers

The Result

Gross margin / unit$70.00
Gross margin %70.0%
CAC$100.00
LTV$1,680
LTV : CAC16.8x
CAC payback1.4 mo

The Operator's Read

Healthy. An LTV:CAC of 16.8x with 1-month payback is fundable — you can afford to spend more to grow.

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Built by The Crimson Bench · Educational tool, not financial advice

About the Unit Economics Calculator

Enter your price, costs, and acquisition spend. This tool returns your gross margin, CAC, LTV, LTV:CAC ratio, and CAC payback — the five numbers investors and operators judge a business on.

How the Unit Economics Calculator Works

5 inputs in, 6 results out — computed live on your device. Here's exactly what it uses.

InputExample value
Average sale price / ARPU$100
Variable cost per unit$30
Monthly sales & marketing spend$10,000
New customers per month100
Avg. customer lifetime (months)24

Worked Example

Using the example inputs above, the tool returns:

Gross margin / unit

$70.00

Gross margin %

70.0%

CAC

$100.00

LTV

$1,680

LTV : CAC

16.8x

CAC payback

1.4 mo

The Operator's Read

Healthy. An LTV:CAC of 16.8x with 1-month payback is fundable — you can afford to spend more to grow.

Assumptions & Limitations

  • This is a single-point calculator — it answers one question at a time. For a full time-based projection, use the matching Toolkit Pro simulator.
  • Defaults are illustrative. Replace them with your real numbers before relying on the result.
  • Educational tool only — not financial, investment, tax, or legal advice.

Frequently Asked Questions

What does the Unit Economics Calculator calculate?

Enter your price, costs, and acquisition spend. This tool returns your gross margin, CAC, LTV, LTV:CAC ratio, and CAC payback — the five numbers investors and operators judge a business on. It takes 5 inputs — Average sale price / ARPU, Variable cost per unit, Monthly sales & marketing spend, New customers per month, Avg. customer lifetime (months) — and returns Gross margin / unit, Gross margin %, CAC, LTV, LTV : CAC, CAC payback.

How do I use the Unit Economics Calculator?

Enter your figures in the fields above and the result updates instantly. No signup, no limits, and nothing leaves your browser — the math runs on your device.

Is the Unit Economics Calculator free?

Yes, completely free. For the full time-based simulation — projection tables, scenarios, Excel/PDF export, and AI analysis — see the matching Toolkit Pro simulator.

Who built this tool?

The Crimson Bench's Ivy League-educated operators — the same people we deploy into C-suites. It uses the exact method they'd apply in an engagement.

Is this financial advice?

No. The Unit Economics Calculator is an educational tool for directional planning — not financial, investment, tax, or legal advice.

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The Crimson Bench · Est. 2002 · Founded in New York City

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