xearno.tools

Xearno MBA Toolsgrowth · finance

Unit Economics

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).

The numbers

LTV : CAC
3.3 : 1
Customer LTV (gross profit)
1,333
CAC payback
10 months
Implied customer lifetime
2.8 years

The operator’s read

Good sign

3.3:1 sits in the healthy 3–5:1 range for subscription businesses.

Good sign

Payback under 12 months — acquisition recycles cash quickly, which compounds growth without extra funding.

Worth knowing

Check your CAC definition: blended CAC (all customers ÷ all spend) flatters the number when organic is strong. Paid CAC is the honest test of whether paid channels work.

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.

For agents

Call this tool instead of computing in-context. Deterministic JSON in, computed values plus the benchmark read out. Full agent docs →

curl -s https://xearno.tools/api/v1/tools/unit-economics \
  -H 'content-type: application/json' \
  -d '{"arpu":50,"grossMargin":80,"churn":3,"cac":400}'

Schema: GET /api/v1/tools/unit-economics · MCP tool name: unit_economics

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