Software and IT services
Subscription customer unit economics
Calculate monthly subscription contribution and simple acquisition-cost payback from entered customer economics.
Your inputs
Complete the fields for your selected method. Zero means intentionally zero, not unknown. Currency selection labels amounts; it does not convert exchange rates.
How this calculation works
contribution/customer = receipts - variable service cost - payment fees; CAC = acquisition spend/new paying customers; payback = CAC/contribution
Match acquisition spend with attributed new paying customers. No lifetime value, churn prediction or valuation is inferred. Payback assumes constant contribution and no customer loss. Acquisition spend is not deducted again from the separate monthly fixed-cost result unless you include it there. Use your own records for the same scope and period. Example figures are illustrative, not industry benchmarks. Results exclude income taxes and any cost you have not entered. Check the result before pricing work or committing resources.
What information do I need?
Use records for the same job, equipment or accounting period. Only the fields for your selected entry method are required. An unknown amount is not zero.
Input definitions and where to find them
- Active paying customers in month (customers): Use the matching measured quantity, time log, schedule or clearly stated estimate. Zero means intentionally none; an unknown amount is not zero.
- Average monthly receipts per customer (selected currency): Use a supplier quote, invoice, payroll record or allocated cost for the exact job or period named here. Include this amount only once.
- Variable monthly hosting and support cost per customer (selected currency): Use a supplier quote, invoice, payroll record or allocated cost for the exact job or period named here. Include this amount only once.
- Monthly payment costs per customer (selected currency): Use a supplier quote, invoice, payroll record or allocated cost for the exact job or period named here. Include this amount only once.
- Acquisition spend for measured cohort (selected currency): Use a supplier quote, invoice, payroll record or allocated cost for the exact job or period named here. Include this amount only once.
- New paying customers attributed to acquisition cohort (customers): Use the matching measured quantity, time log, schedule or clearly stated estimate. Zero means intentionally none; an unknown amount is not zero.
- Fixed operating costs for month (selected currency): Use a supplier quote, invoice, payroll record or allocated cost for the exact job or period named here. Include this amount only once.
Use the Where to find this value controls beside the inputs for available work-it-out helpers. Estimates remain your assumptions; a helper does not verify the source figures.
Worked example
Example amounts use US dollars (USD).
Example answer: Monthly contribution per customer is $21.00 for the illustrative inputs below.
Example inputs
- Active paying customers in month: 100 customers
- Average monthly receipts per customer: $30.00
- Variable monthly hosting and support cost per customer: $8.00
- Monthly payment costs per customer: $1.00
- Acquisition spend for measured cohort: $2,000.00
- New paying customers attributed to acquisition cohort: 20 customers
- Fixed operating costs for month: $1,000.00
- Monthly contribution per customer
- $21.00
- Acquisition cost per new customer
- $100.00
- Simple acquisition-cost payback
- 4.76 months
- Monthly contribution after fixed costs
- $1,100.00
These illustrative values are not recommended rates or industry averages. Replace every example input with your own figures.
Use the result well
Calculate monthly subscription contribution and simple acquisition-cost payback from entered customer economics. Inputs come from your own records and stated assumptions; no rates or legal limits are looked up.
Keep inputs on the same scope and time basis. Calculations retain precision internally; displayed values generally round to two decimal places, with extra precision for very small values and whole-unit rounding where required. Economic comparisons describe your supplied assumptions and do not guarantee future results.
This tool provides business arithmetic. It does not approve engineering designs, establish legal or tax treatment, select equipment or certify safe operating conditions.