Financial · 3 min read

Unit economics: is each sale actually making you money?

Look at profit per order or per customer, not just total revenue.

Unit economics: is each sale actually making you money?

Growing revenue can hide a business that loses money on every sale. Unit economics checks the profit of one unit — one order, one customer or one project.

Per order

Selling price

− cost of the product

− delivery and packaging

− payment and platform fees

= contribution per order

If it's negative, selling more makes things worse.

Per customer

  • Customer acquisition cost (CAC): marketing and sales spend ÷ new customers won.
  • Customer lifetime value: average contribution per order × number of orders a customer places over time.

A healthy business earns well above its acquisition cost from each customer.

What to do with the result

  • Raise prices or minimum order values where contribution is thin.
  • Cut delivery or fee costs through better contracts.
  • Focus marketing on channels with the lowest acquisition cost.

Try the break-even calculator to see how many units you need to cover fixed costs.

Try it yourself: Break-even calculatorOpen the tool
TopicsUnit economicsCustomer acquisition costContribution per order

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