Unit Economics Calculator Team

1 Selling price ($/time unit) 2 Gross Profit margin (%) 3 Lifetime (# time units)

How much does the customer For each unit of our product or How many times does a user
pay for 1 unit of our product or service, what is the cost of buy, and pay the selling price,
service? materials and direct labor used for your product or service
to produce that unit (COGS)? before leaving the relationship
So what is our final gross profit with your company?
margin in percentage (gross
profit = [selling price - COGS] /
Selling price)?
5 LTV/CAC

1 indicates we capture as much

value from a customer as we
spend on producing the
product/service for him and

=
Lifetime value (LTV)
>3
acquiring him.
As this formula does not take
into account fixed costs, a 1
would still not be profitable.
4 Customer Acquisition Cost
The higher the number, the
(CAC/CoCA/CoA)
bigger our contribution to the
fixed costs of our business.
How much do you spend on
As common rule of thumb we
acquiring a customer?
need a 3 or higher.
Annual sales and marketing
expenses/gross yearly
customer add
If you are not operation yet and
have no expenses, estimate or
benchmark from the market

About this tool
 business model. While you might not have your business model. Keep adjusting the
The “Unit Economics Calculator” template is concrete numbers at this point, this simple numbers as you (in)validate the assumptions.
designed to help you make a quick tool forces you to agree on a couple of key printsize: A3
guesstimate regarding the profitability of your assumptions that will test the profitability of boardofinnovation.com/tools