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Unit Economics — Monthly Subscription

A simplified gross-profit estimate for monthly subscriptions. CAC = Acquisition spend ÷ New customers. LTV = Monthly revenue per customer × Gross margin ÷ Monthly customer churn. Payback = CAC ÷ Monthly gross profit per customer. Enter margins and churn as percentages from 0 to 100. Missing, out-of-range or zero-denominator inputs leave the affected metric blank. Do not invent a customer lifetime when churn is 0%; compare consistent periods and segments.

Unit Economics — Monthly Subscription

Period
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Customer segment definition
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Currency unit / tax treatment
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Monthly subscription business — gross-profit estimate
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Acquisition cost, gross margin and churn definitions

Costs included in acquisition spend
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Scope of the gross margin calculation
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Churn denominator and measurement method
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Monthly unit economics by customer segment

Customer segmentMonthly revenue per customerGross margin (%)Acquisition spendNew customers acquiredMonthly customer churn (%)CACLTVLTV / CACCAC payback — months
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Assumptions behind the estimate

Assumptions and uncertainty
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Gross-profit approximation for a monthly subscription model. Assumes revenue per customer, gross margin and churn remain constant. Metrics with a zero denominator are not calculated.

Source / reference