Free Unit Economics Calculator
Calculate unit economics to determine the profit or loss generated by each unit of product or service sold.
Contribution Per Unit
$35.00
Contribution Per Unit vs Selling Price Per Unit
How to Calculate Unit Economics
Formula
Contribution Per Unit = Selling Price - COGS - Operating Cost - Acquisition Cost Unit Margin = Contribution / Selling Price x 100
Unit economics answers the fundamental business question: do you make money on each sale? Positive unit economics means you earn profit on every transaction and can scale profitably. Negative unit economics means scaling only accelerates losses. Startups sometimes operate with negative unit economics temporarily to capture market share, but eventually every unit sold must contribute positive margin.
Example Calculation
A product sells for $120. COGS is $40, allocated operating cost is $30, and acquisition cost is $15 per unit.
- 01Gross Profit = $120 - $40 = $80
- 02Contribution = $120 - $40 - $30 - $15 = $35
- 03Unit Margin = ($35 / $120) x 100 = 29.2%
Frequently Asked Questions
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