# Unit Economics Calculator

> Calculate LTV, CAC, payback, and LTV:CAC.

Canonical: https://launchaf.com/tools/unit-economics

Category: Money. Free, no signup. Runs in your browser.

## How to use Unit Economics Calculator

1. Enter revenue per customer per month and your gross margin.
2. Enter your monthly churn and your cost to acquire a customer (CAC).
3. Read LTV, LTV:CAC, CAC payback, and average customer lifetime.
4. Open Formulas to see exactly how each number is calculated.

**Tip:** A common rule of thumb is LTV:CAC of 3 or more and a payback under 12 months.

The tool itself is interactive: open [Unit Economics Calculator](https://launchaf.com/tools/unit-economics) in a browser to use it.

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