Business Model Revenue Engine

Revenue Model

SaaS: every acquired user pays every month. 100% of the base is billable revenue.

Unit Economics

Price per paying user / mo $29

Customer acquisition cost (CAC) $120

Monthly churn rate 5%

Marketing budget / mo $3,000

Live Readouts

MRR

Customers

LTV : CAC

0.0×

Cumulative cash

How it works

Each simulated month applies the standard SaaS/startup unit-economics recurrence to a single cohort pool:

new  = floor(budget / CAC)
churned = round(customers × churnRate)
customers += new − churned
paying  = round(customers × conversionRate)
MRR = paying × price
profit  = MRR − budget − fixedCosts
cash += profit

LTV = (conversionRate × price) / churnRate
LTV:CAC = LTV / CAC

The conversion rate is set by the revenue-model archetype: 100% for subscription (every acquired user is billed), a small slice for freemium (most signups stay on the free tier), and a mid-range slice for a marketplace (only active buyers generate take-rate revenue that month). Switching model changes which slice of the acquired base is actually billable — it does not change the acquisition or churn mechanics.

A widely used rule of thumb: LTV:CAC ≥ 3× signals a durable model, below 1× means every acquired customer loses money over their lifetime. The gold spheres in the 3D view are the paying slice; the grey ones are acquired-but-non-paying users. The bar track shows the last 24 months of MRR, colored green for a profitable month and red for a loss.

Month 0

Paying customers Non-paying / free Profitable month

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