{"slug":"unit-economics","name":"Unit Economics","category":"mba","tags":["growth","finance"],"tagline":"LTV, LTV:CAC, and CAC payback — with the benchmarks that make them mean something.","endpoint":"https://xearno.tools/api/v1/tools/unit-economics","page":"https://xearno.tools/t/unit-economics","description":"Computes customer lifetime value from ARPU, gross margin, and churn; compares it to acquisition cost; and reads the result against the standard SaaS/subscription benchmarks (3:1 LTV:CAC, sub-12-month payback).","inputSchema":{"type":"object","properties":{"arpu":{"description":"Revenue per customer / month Average monthly revenue per active customer (ARPU).","type":"number","minimum":0.01,"default":50},"grossMargin":{"description":"Gross margin (%)","type":"number","minimum":1,"maximum":100,"default":80},"churn":{"description":"Monthly customer churn (%) Share of customers lost per month.","type":"number","minimum":0.01,"maximum":100,"default":3},"cac":{"description":"Customer acquisition cost Fully-loaded sales + marketing cost per new customer.","type":"number","minimum":0.01,"default":400}},"required":[],"additionalProperties":false},"methodology":["LTV = (ARPU × gross margin) ÷ monthly churn. This is the standard gross-profit LTV; revenue-based LTV overstates by the margin factor.","CAC payback = CAC ÷ monthly gross profit per customer — months until a customer has repaid their acquisition cost.","Benchmarks (3:1 LTV:CAC, <12-month payback, <2%/mo B2B churn) are widely used SaaS operating norms — useful as thresholds, not laws. The 1/churn lifetime assumes constant churn, which overstates lifetime when early churn is higher than mature churn."],"usage":"POST https://xearno.tools/api/v1/tools/unit-economics with a JSON body matching inputSchema."}