Unit economics
Unit economics definition for SaaS and AI founders: what it means, how to calculate it, and common pitfalls when reading it in dashboards.
Unit economics describe whether a single unit of your business — a customer, a seat or a request — makes money, and how quickly.
In practice
Common measures: gross margin per customer, LTV, CAC and payback. Try the unit economics calculator.
Related terms
Related
- ARPAAverage MRR per paying customer.
- ARRAnnualized recurring revenue: MRR multiplied by twelve.
- CACSales and marketing spend per new customer.
- ChurnCustomers or recurring revenue lost in a period.
- COGSThe direct cost of delivering your product to existing customers.
- Contribution marginRevenue minus all variable costs, including variable sales costs.
See your real margin in five minutes.
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