Calculator

Subscription Margin Calculator

Subscriptions are easy to overrate when the team sees recurring revenue first and cycle-level contribution second. Use this calculator to connect per-cycle margin to retention and get a cleaner lifetime value before CAC enters the picture.

See net contribution per billing cycle
Translate margin into gross LTV before CAC
Expose fee drag over the subscriber lifetime

Calculate subscription margin

Enter subscription price, cycle-level costs, fee rate, support cost, and average retention in months. The result shows what one subscriber contributes over time before acquisition, retention spend, or overhead is layered in.

Subscription price per cycle Revenue from one subscriber in a billing cycle. Product cost per cycle Direct product or content delivery cost per cycle. Fulfilment cost per cycle Pick-pack, shipping, or service delivery burden per cycle. Fee rate % Payment or marketplace fee rate on subscription revenue. Fixed fee per charge Fixed card or payment fee per rebill. Support cost per cycle Customer support, refunds reserve, or account servicing cost. Average retention months Average lifetime of a subscriber before churn.

Three subscription scenarios.

Formula

What the subscription model shows

Gross LTV before CAC = Net contribution per cycle × Average retention months

Recurring revenue matters, but only after cycle-level contribution is clean. This model treats payment fees, support burden, product cost, and fulfilment as part of the subscription truth before lifetime value is discussed.

Where subscriptions get overvalued

Teams multiply price by retention without cleaning cycle-level contribution.
Support and payment drag get treated as overhead instead of cycle cost.
Retention looks healthy while net contribution per cycle is too thin.

Useful next step

Once subscription contribution is clean, compare it against AOV lift and storefront fee drag to decide whether recurring offers deserve more budget than one-off bundles.