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Unit Economics Calculator

Business

Calculate per-unit contribution margin and profit after customer acquisition cost.

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USD
$0.00$1,000,000.00
USD
$0.00$1,000,000.00
USD
$0.00$1,000,000.00

Profit After Acquisition Cost

$25.00

True per-unit profit after subtracting both variable cost and customer acquisition cost.

USD

Contribution Margin

$50.00

Revenue per unit minus variable cost, before acquisition cost.

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Odeh Ahwal

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Odeh Ahwal
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Frequently Asked Questions

Why look at unit economics separately from overall company profitability?

Unit economics reveal whether the core business model is fundamentally profitable on a per-customer basis, independent of fixed costs and overall scale, which is essential for understanding whether growth will eventually become profitable.

What does a negative profit after acquisition cost mean?

It means the business is currently losing money on every unit sold once acquisition cost is included, which is unsustainable long-term unless customers generate enough repeat purchases or lifetime value to eventually become profitable.

Should CAC be amortized over a single sale or customer lifetime?

For businesses with repeat customers, many operators amortize CAC across expected customer lifetime value rather than a single transaction, since a single purchase often does not fully recover the cost to acquire that customer.

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