Technical Manual — Profitability & Pricing
Business Profitability & Pricing Calculator
Enter your prices, costs and volume. Every margin, break-even point and lifetime-value figure recalculates instantly. Hover any ? for a plain-English explanation.
Unit Economics
Operating Overhead
Volume & Retention
Acquisition Mix (optional)
Give each ad channel its own cost per customer and its share of your sales. Turn this on and the blended CAC above is worked out for you.
Net Monthly Profit
$3,000
$10,000 revenue − $5,000 COGS + CAC − $2,000 overhead · 30% net margin
Profitable model.
At 200 units a month you clear $3,000 after every cost, a 30% net margin.
The green dot is where the line crosses $0 — the units you must sell each month (after ads) to stop losing money.
Unit Margins & Contribution
Gross Profit / UnitSelling price minus what it costs to make and deliver the unit.
$35.00
Gross MarginGross profit as a share of the selling price.
70%
Fully Loaded ContributionWhat is left from one sale after both product cost and the cost of acquiring that customer.
$25.00
Fully Loaded Unit Margin
50%
Feasibility & Overhead
Contribution Toward OverheadEach unit's gross profit goes toward paying your fixed monthly bills.
$35.00
Break-Even VolumeUnits per month needed for gross profit to fully cover fixed overhead.
57 units
Break-Even RevenueThe sales figure those break-even units represent.
$2,857
Bottom-Line Profitability
Total Monthly Revenue
$10,000
Total Monthly COGS + CAC
$5,000
Net Monthly Profit
$3,000
Net Profit Margin
30%
Customer Lifetime Metrics
LTV Gross ProfitLTV = Lifetime Value. Total gross profit one customer brings across all their repeat orders.
$70.00
LTV-to-CAC RatioHow many dollars of lifetime profit each dollar of marketing buys. Aim for 3 or more.
7 : 1
Lifetime Margin / CustomerLifetime gross profit after subtracting what you paid to win the customer.
$60.00