Unit Economics Calculator
Calculates the core unit economics of a business: revenue per unit, cost per unit, contribution margin, and unit-level profitability. Helps determine whether the fundamental business model is viable at scale.
Business - Unit Economics Calculator.xlsx
Excel (.xlsx) — No macros — Works in Excel, Google Sheets, LibreOffice
What This Spreadsheet Solves
- No clear picture of whether each unit sold actually generates profit
- Difficulty separating unit-level economics from total business performance
- Inability to identify which cost components erode unit margins
- Lack of data to evaluate whether scaling the business will improve or worsen economics
- Unclear how unit economics change across customer segments or channels
Who This Is For
- Startup founders validating business model viability
- Investors evaluating unit economics during due diligence
- Product managers assessing per-unit profitability
- Operations managers optimizing cost structure
Inputs
- $Revenue per Unit
- $Cost of Goods Sold per Unit
- $Customer Acquisition Cost
- $Fulfillment/Delivery Cost per Unit
- #Units Sold per Period
Outputs
- Contribution Margin per Unit
- Contribution Margin %
- Gross Profit per Unit
- CAC Payback (units)
- Break-Even Volume
- Margin After CAC
How Calculations Work
Contribution margin is calculated by subtracting all variable costs (COGS, fulfillment) from revenue per unit. CAC payback shows how many units must be sold to recover the acquisition cost. Break-even volume divides fixed costs by contribution margin per unit. The model surfaces the fundamental question: does each unit sold bring you closer to profitability or further from it?
Example Use Case
Scenario: A D2C brand: $45 average order value, $15 COGS, $8 fulfillment, $22 CAC, selling 500 units/month with $10K fixed costs.
Result: Contribution margin: $22/unit (49%). CAC payback: 1 unit. Gross profit per unit after CAC: $0. Break-even volume: 455 units. At 500 units, monthly profit is $1,000. Unit economics are marginally positive but fragile.
What You Get — 5 Sheets
Technical Details
Frequently Asked Questions
What is the difference between unit economics and overall profitability?
Unit economics isolates the profit or loss from a single transaction or customer. Overall profitability includes fixed costs, overhead, and scale effects. You can be unit-profitable but overall unprofitable if fixed costs are too high.
Should CAC be included in unit economics?
Yes. CAC is a real cost to acquire each customer. The model shows contribution margin both before and after CAC so you can see both views.
What is a good contribution margin percentage?
It varies by industry. Software: 70-90%. E-commerce: 30-50%. Manufacturing: 20-40%. The key is that it must be high enough to cover fixed costs at your current scale.
How do I use this for a subscription business?
Enter the average revenue per subscriber per period and all per-subscriber costs. CAC payback becomes the number of periods (not units) to recover acquisition cost.
Can I compare unit economics across product lines?
Yes. Enter each product line as a separate row in INPUT and the OUTPUT sheet will display a side-by-side comparison.
Download Unit Economics Calculator
Ready to use immediately. Enter your data in the INPUT sheet, see results in OUTPUT.