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Unit Economics Calculator

Calculate gross margin, contribution margin, break-even units, LTV/CAC and monthly profitability for any African business — products, services or SaaS.

NGN Default LTV/CAC Ratio Break-Even Analysis Free
Unit Revenue & Costs
Unit Economics Summary
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Monthly Net Profit/Loss
Realised Revenue (per unit, after refunds)—
COGS (per unit)—
Other Variable Cost (per unit)—
Gross Profit (per unit)—
Gross Margin %—
Contribution Margin (per unit)—
Contribution Margin %—
Break-Even Units / Month—
Break-Even Revenue / Month—
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Monthly Revenue
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Monthly COGS
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Monthly Gross Profit
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Monthly Fixed Costs
Local-first planning estimate. Uses only the numbers entered on this device; no customer, price, or cost data is sent to a server. Benchmarks and market conditions can change, so confirm with current supplier, tax, and accountant inputs before pricing.
FAQ
What is the difference between gross margin and contribution margin?

Gross margin subtracts COGS from realised revenue. Contribution margin subtracts COGS plus every other variable cost. Contribution margin is therefore the amount each unit contributes toward fixed costs and profit.

What LTV/CAC ratio is healthy?

There is no universal healthy ratio. Compare contribution LTV with CAC, cash payback timing, retention evidence and your own capital constraints. This tool calculates a ratio only when you enter both CAC and expected paid units per customer.

What gross margin should I target in Nigeria?

Use your own historical margins and current supplier, labour, logistics, payment, tax and returns evidence. Sector averages can hide major differences in product mix, geography, channel and business stage.

Unit Economics Guide

Key Formulas

Gross Margin = (Price - COGS) / Price
Contribution Margin = Price - All Variable Costs
Break-Even = Fixed Costs / Contribution Margin
Contribution LTV = Contribution per Unit × Expected Paid Units per Customer
LTV/CAC = LTV / Customer Acquisition Cost

Input Evidence

  • Use realised selling price after discounts and refunds
  • Separate COGS from packaging, payment and delivery costs
  • Use actual acquisition spend and acquired-customer count
  • Base lifetime orders on a dated retention cohort
  • Re-run when supplier, FX, logistics or fee inputs change
Related Tools
→ Break-Even Calculator → Profit Margin Calculator → Markup / Margin Calculator → Churn Rate Calculator
Disclaimer: Estimates based on your inputs. Actual profitability depends on operational variables, taxes, and market conditions. Consult an accountant for financial planning.
Unit economics workflow

Check whether every sale contributes enough to survive growth

Use realised price, COGS, other variable costs, fixed costs, volume, CAC, refunds, and expected paid units per customer to understand contribution margin, break-even, and contribution LTV/CAC.

Local unit economics estimate

Inputs and outputs stay in this browser unless you copy, download, print, save, or share them.

Primary task

  • Enter price, COGS, other variable costs, returns, fixed costs, and expected sales volume.
  • Add CAC and expected paid units per customer only when backed by cohort evidence.
  • Calculate and review gross margin, contribution margin, break-even, and monthly profit.

Result and export

  • Gross margin, contribution margin, break-even units, monthly profit, and optional contribution LTV/CAC.
  • Copy and TXT download actions in the result panel; no PDF is generated.
  • Local-first estimate note for sensitive business data.

Before you use it

  • Use real supplier quotes and actual ad/customer acquisition data where possible.
  • Recalculate when FX, logistics, returns, or payment fees change.
  • Ask an accountant before using results for financing or tax decisions.

Assumptions and freshness

Supplier prices, payment fees, FX, CAC, churn, and taxes can change quickly. Treat this as a planning model, not audited financial advice.

Report tool issue

Planning utility only. It is not an official filing, legal, tax, accounting, security, finance, platform, lender, or live-data service.