Unit Economics Analyzer

Calculates and benchmarks key unit economics metrics like CAC, LTV, payback period, and contribution margin with segment and scenario analysis.

Security Scan

The skill's instructions, inputs, and scope match its stated purpose (unit-economics analysis); it requires no credentials, installs nothing, and contains only calculation and benchmarking guidance with promotional links.

Purpose & Capability

Name and description align with the required inputs and the SKILL.md: all requested inputs (ARPU, churn, gross margin, S&M spend, etc.) are appropriate and necessary for CAC/LTV/payback and scenario analyses.

Instruction Scope

The SKILL.md stays within its stated scope (compute metrics, segment/cohort analysis, scenario planning). It asks users to provide business metrics or allows estimation of missing values. It includes external promotional links to afrexai-cto.github.io (paid context packs and tools); these links are not invoked by the skill itself but may direct users off-platform if followed.

Install Mechanism

Instruction-only skill with no install spec and no code files — nothing is written to disk or executed on install.

Credentials

The skill requests no environment variables, credentials, or config paths. Inputs are limited to business metrics provided by the user, which is proportionate to the stated functionality.

Persistence & Privilege

always is false and the skill does not request persistent privileges or system-level changes. It does not modify other skills or agent-wide config based on the provided materials.

Assessment

This skill appears coherent and safe in structure: it only asks for business metrics and provides formulas, benchmarks, and scenario analyses. Before providing data, avoid pasting full customer lists, personally identifiable customer records, or secrets — supply aggregated metrics (ARPU, churn, totals) rather than raw spreadsheets. Be aware the README/SKILL links point to external, paid resources (afrexai-cto.github.io); the skill itself does not appear to exfiltrate data, but you should not paste sensitive data into any third-party pages. If you need higher assurance, request a version that can run locally (no outbound links) or review any agent logs to ensure data is not being sent to external endpoints.

Break down your business to the numbers that actually matter. This skill calculates and benchmarks your unit economics — CAC, LTV, payback period, contribution margin — so you know exactly which customers make you money and which ones burn it.

What It Does

When activated, the agent will:

1. Calculate Core Metrics

   • Customer Acquisition Cost (CAC) — fully loaded (ads + sales salaries + tools + overhead)
   • Lifetime Value (LTV) — using both simple and DCF methods
   • LTV:CAC Ratio — the single number investors care about most
   • CAC Payback Period — months to recover acquisition spend
   • Contribution Margin — per unit and per customer

2. Benchmark Against Industry

   Metric	Healthy SaaS	Marketplace	E-commerce	Services
   LTV:CAC	3:1 – 5:1	2:1 – 4:1	1.5:1 – 3:1	4:1 – 8:1
   CAC Payback	12-18 mo	6-12 mo	1-3 mo	3-6 mo
   Gross Margin	70-85%	40-65%	30-50%	50-70%
   Net Revenue Retention	110-130%	100-115%	80-100%	90-110%

3. Segment Analysis

   • Break unit economics by customer segment, channel, plan tier, geography
   • Identify which segments are profitable and which are subsidized
   • Flag "toxic" segments where CAC > LTV

4. Cohort Decay Modeling

   • Month-over-month retention curves by acquisition cohort
   • Revenue decay rate and true LTV (not the optimistic version)
   • Churn-adjusted LTV using: LTV = ARPU × Gross Margin / Monthly Churn Rate

5. Scenario Planning

   • What happens to payback if CAC increases 20%?
   • Impact of 5% churn reduction on LTV
   • Break-even analysis: minimum retention rate for profitability
   • Pricing sensitivity: how price changes flow through to unit economics

How to Use

Tell the agent:

• "Analyze my unit economics" — walks through full calculation
• "My CAC is $X and monthly churn is Y%" — gets specific benchmarks
• "Compare my SaaS unit economics to benchmarks" — industry comparison
• "Model what happens if we cut churn by 3%" — scenario analysis
• "Break down unit economics by customer segment" — segmentation

Required Inputs

Provide what you have (the agent will estimate what's missing):

Revenue side:

• Average Revenue Per User (ARPU) — monthly or annual
• Gross margin percentage
• Monthly or annual churn rate
• Expansion revenue rate (upsells, cross-sells)

Cost side:

• Total sales & marketing spend (monthly/quarterly)
• New customers acquired in same period
• Customer success/support costs per account
• Onboarding costs per customer

Formulas Reference

CAC = Total Sales & Marketing Spend / New Customers Acquired

LTV (Simple) = ARPU × Gross Margin% / Monthly Churn Rate

LTV (DCF) = Σ (Monthly Revenue × Gross Margin%) / (1 + Discount Rate)^month

LTV:CAC Ratio = LTV / CAC  [Target: >3:1]

Payback Period = CAC / (ARPU × Gross Margin%)  [months]

Contribution Margin = (Revenue - Variable Costs) / Revenue

Magic Number = Net New ARR / Prior Quarter S&M Spend  [Target: >0.75]

Burn Multiple = Net Burn / Net New ARR  [Target: <2x]

Red Flags Dashboard

Signal	Threshold	Action
LTV:CAC below 1:1	Losing money on every customer	Stop acquiring, fix retention or pricing
LTV:CAC below 3:1	Unsustainable at scale	Reduce CAC or increase retention
Payback > 24 months	Cash flow risk	Accelerate monetization or cut acquisition
Gross margin < 50%	Service business, not software	Re-examine delivery costs
Net retention < 100%	Revenue shrinking without new sales	Fix product-market fit
CAC trending up > 15% QoQ	Channel saturation	Diversify acquisition channels
Magic Number < 0.5	Inefficient growth spend	Pause scaling, optimize

Output Format

The agent produces:

• Executive Summary — 3-line verdict on business health
• Metrics Table — all calculated values with industry benchmarks
• Segment Breakdown — if data provided, per-segment P&L
• Scenario Matrix — sensitivity analysis on key variables
• Action Items — prioritized list of improvements with expected impact

---

Get the Full Context

This skill gives you the framework. For industry-specific unit economics benchmarks, valuation context, and implementation playbooks:

→ AI Agent Context Packs — $47 per industry. SaaS, Fintech, Healthcare, E-commerce, and 6 more.

→ AI Revenue Leak Calculator — Free. Find where your business is losing money.

→ Agent Setup Wizard — Free. Configure your AI agent in 5 minutes.

Bundles:

• Pick 3 Packs — $97 (save $44)
• All 10 Packs — $197 (save $273)
• Everything Bundle — $247 (all packs + playbook + setup)