Unit economics answer one question: does each customer make you money, and how fast? Growth without healthy unit economics is just lighting cash on fire faster. Here's the model a unit-economics template should encode, and how to read it.
From those four you derive the verdicts:
ARPU $120/mo, gross margin 80%, monthly churn 3%, CAC $700.
That's a healthy profile: you recover acquisition cost in about 7 months and earn it back 4–5x over the customer's life.
These formulas are interdependent — change churn and LTV, payback and the ratio all move. A template wires them together so you can stress-test: "if churn rises to 5%, are we still healthy?" Doing that by hand each time invites arithmetic errors that quietly mislead a pricing or hiring decision.
The template we recommend models ARPU, margin, CAC, churn and the full set of derived unit-economics metrics together, so a change in any input flows correctly through to the verdict.
The per-customer profitability of your business: ARPU, gross margin, CAC and churn, plus the derived LTV, LTV:CAC ratio, CAC payback period and quick ratio that tell you whether growth makes money.
LTV = (ARPU × gross margin) ÷ monthly churn rate. Using revenue instead of gross profit overstates LTV and inflates every downstream ratio.
Under 12 months is healthy. It's CAC ÷ (ARPU × gross margin) — the months of gross profit needed to recover the cost of acquiring a customer.
Page built 2026-06-14 from public, dated buying-intent signals. Updated as new signals land.
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