Unit Economics, Profitability & Pricing
Margins, customer acquisition and lifetime value, break-even, pricing, landed cost and recurring-revenue metrics, explained with worked numbers. 80 articles.
Start here: the complete guide
Unit Economics: The Complete Guide to Profitable Growth
Unit economics explained for founders and finance leaders: contribution margin, CAC, LTV, break-even, pricing, landed cost, channel margins and SaaS metrics.
Unit economics fundamentals
- What Is Unit Economics? A Guide for Founders and Finance LeadersGuide / explainer · 9 min
- Unit Economics Formulas: Revenue, Cost, and Contribution Per UnitFormula / metric explainer · 7 min
- Contribution Margin: What It Is and Why It Beats Gross Margin for DecisionsGuide / explainer · 8 min
- Contribution Margin Formula, With Worked ExamplesFormula / metric explainer · 6 min
- Variable vs. Fixed Costs: How to Classify YoursGuide / explainer · 7 min
- Gross Margin vs. Contribution Margin: Which One Should You Manage To?Comparison · 9 min
- Unit Economics for Ecommerce Brands: A Line-by-Line ModelGuide / explainer · 8 min
- Unit Economics for SaaS: The Metrics That MatterGuide / explainer · 8 min
- Unit Economics for Two-Sided MarketplacesGuide / explainer · 8 min
- 8 Unit Economics Mistakes Founders MakeList / checklist post · 7 min
Customer acquisition and lifetime value
- Customer Acquisition Cost (CAC): What to Include and What to Leave OutGuide / explainer · 8 min
- How to Calculate CAC, With ExamplesFormula / metric explainer · 6 min
- Blended CAC vs. Paid CAC: Which One to TrackComparison · 7 min
- Customer Lifetime Value (LTV): A Practical GuideGuide / explainer · 8 min
- How to Calculate Customer Lifetime ValueFormula / metric explainer · 7 min
- LTV to CAC Ratio: How to Use It Without Fooling YourselfGuide / explainer · 8 min
- CAC Payback Period: Formula and How to Shorten ItFormula / metric explainer · 7 min
- Cohort Analysis: How to Do It and What to Look ForHow-to · 8 min
- Customer Retention Rate: Formula and How to Improve ItFormula / metric explainer · 7 min
- Churn Rate: How to Calculate It and What Counts as Healthy for Your ModelFormula / metric explainer · 6 min
- Revenue Churn vs. Logo Churn: Which One Tells the Truth?Comparison · 7 min
- How to Reduce Customer Acquisition Cost Without Cutting GrowthHow-to · 7 min
Margins and profitability
- Gross Margin: Formula, Examples, and How to Improve ItGuide / explainer · 8 min
- Gross Margin vs. Markup: The Difference, With a Conversion TableComparison · 7 min
- Net Profit Margin: Formula and How to Read ItFormula / metric explainer · 6 min
- EBITDA Explained: What It Is, What It HidesGuide / explainer · 7 min
- EBITDA vs. Net Income: Which Matters More?Comparison · 7 min
- Operating Margin: Formula and Use CasesFormula / metric explainer · 5 min
- Product Margin Analysis: How to Find Your Real Winners and LosersHow-to · 7 min
- SKU Profitability Analysis: A Step-by-Step MethodHow-to · 7 min
- Customer Profitability Analysis: Who Actually Makes You Money?How-to · 7 min
- Channel Profitability: Comparing DTC, Wholesale, and Marketplace MarginsHow-to · 7 min
- Product Mix Analysis: Which SKUs Deserve More Capital?How-to · 7 min
- 10 Ways to Improve Margins Without Raising PricesList / checklist post · 6 min
Break-even and cost structure
- Break-Even Analysis: A Step-by-Step GuideHow-to · 7 min
- Break-Even Point Formula, With Worked ExamplesFormula / metric explainer · 6 min
- Break-Even Analysis for a New Product LaunchHow-to · 7 min
- Cost-Volume-Profit (CVP) Analysis ExplainedGuide / explainer · 7 min
- Operating Leverage: How Fixed Costs Amplify Profit and RiskGuide / explainer · 8 min
- Activity-Based Costing: When It's Worth the EffortGuide / explainer · 8 min
- Cost Allocation Methods: Choosing the Right DriverGuide / explainer · 8 min
- Overhead Rate: How to Calculate and Apply ItFormula / metric explainer · 6 min
- Break-Even Calculator (Excel and Google Sheets)Template / download · 5 min
Pricing and profitability
- Pricing Strategy: A Margin-First FrameworkGuide / explainer · 8 min
- Cost-Plus Pricing: How It Works and Where It FailsGuide / explainer · 8 min
- Value-Based Pricing: How to Set Prices Customers Will PayGuide / explainer · 10 min
- Price Elasticity of Demand: How to Estimate It for Your ProductsFormula / metric explainer · 7 min
- How Discounts Erode Margin: The Math Behind a 'Small' PromotionHow-to · 8 min
- How to Raise Prices Without Losing CustomersHow-to · 7 min
- Promotion ROI: How to Tell Whether a Promo Made MoneyHow-to · 8 min
- Bundle Pricing: When It Lifts Margin and When It Doesn'tGuide / explainer · 8 min
- Pricing Analytics: Data You Need Before Changing a PriceGuide / explainer · 8 min
- How to Run a Price Test Without Hurting SalesHow-to · 9 min
Consumer product economics
- Landed Cost: What's Included and How to Calculate ItFormula / metric explainer · 7 min
- Landed Cost Calculator (Excel and Google Sheets)Template / download · 5 min
- How Shipping Costs Quietly Erode Product MarginGuide / explainer · 8 min
- The True Cost of Returns for Consumer BrandsGuide / explainer · 9 min
- Marketplace Fees and Their Impact on MarginGuide / explainer · 9 min
- DTC Contribution Margin: A Per-Order ModelHow-to · 8 min
- Wholesale vs. DTC Margins: What Each Channel Really EarnsComparison · 7 min
- Cost of Goods Sold (COGS): What's Included and Why It MattersGuide / explainer · 9 min
- COGS Formula and Inventory Method ExamplesFormula / metric explainer · 7 min
- Retail Margin Structures: Brand, Distributor, and RetailerGuide / explainer · 7 min
SaaS and recurring revenue metrics
- MRR vs. ARR: Which to Use and WhenComparison · 6 min
- Annual Recurring Revenue (ARR): Formula and Common MistakesFormula / metric explainer · 7 min
- Net Revenue Retention (NRR): How to Calculate and Improve ItFormula / metric explainer · 6 min
- Gross Revenue Retention: Formula and How It Differs From NRRFormula / metric explainer · 6 min
- The Rule of 40: What It Measures and How to Apply ItGuide / explainer · 9 min
- The SaaS Magic Number: Formula and InterpretationFormula / metric explainer · 6 min
- Burn Multiple: How to Measure Growth EfficiencyFormula / metric explainer · 7 min
- SaaS Gross Margin: What to Include in COGSGuide / explainer · 8 min
- Expansion Revenue: How to Track and Grow ItGuide / explainer · 8 min
- Customer Concentration Risk: How to Measure and Manage ItGuide / explainer · 8 min
Modeling and reporting
- Unit Economics Template (Excel and Google Sheets)Template / download · 5 min
- How to Build a Unit Economics DashboardHow-to · 7 min
- Unit Economics for Fundraising: What Investors Want to SeeHow-to · 6 min
- Sensitivity Analysis on Unit Economics: Which Levers Matter MostHow-to · 7 min
- Profitability Reporting for Executives: What to IncludeGuide / explainer · 8 min
- Board-Level Profitability Metrics: What to ReportGuide / explainer · 8 min
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