Unit economics refers to the direct revenues and costs associated with a single unit of product or service. It’s a way of measuring the profitability of your business at the unit level, helping you understand whether scaling will generate sustainable profits.
Our Unit Economics Calculator (2025/26) helps you:
This makes it a vital tool for founders, investors, and business managers who want to track performance and plan growth strategies.
Unit economics focus on the revenues and costs linked to a single unit of product or service. By calculating profitability at this level, you can see if scaling your business will actually generate profits.
Gross Profit Per Unit
Formula: Revenue per Unit – Variable Cost per Unit
Example: If revenue is £100 and variable cost is £40, gross profit = £60.
Contribution Margin
Formula: (Revenue per Unit – Variable Cost per Unit) ÷ Revenue per Unit × 100
Example: (£100 – £40) ÷ £100 × 100 = 60%.
Total Revenue
Formula: Revenue per Unit × Units Sold
Total Costs
Formula: (Variable Cost × Units Sold) + Fixed Costs
Break-Even Units
Formula: Fixed Costs ÷ (Revenue per Unit – Variable Cost per Unit)
This shows how many units you need to sell to cover all costs.
LTV : CAC Ratio
Formula: Customer Lifetime Value (LTV) ÷ Customer Acquisition Cost (CAC)
A strong business usually aims for at least 3:1.
Overall Profitability
Formula: Total Revenue – Total Costs
If positive → you’re profitable, if negative → your unit economics don’t scale yet.
Strong unit economics prove that your business has the potential to scale profitably. They not only show whether your model is sustainable but also help investors and managers understand the long-term outlook. If each unit sold contributes positively, scaling becomes a matter of expanding operations rather than fixing inefficiencies.
Key benefits include:
Unit economics in 2025/26 are shaped by rising costs, shifting customer expectations, and competitive pressures. Companies need to adapt their strategies to protect margins and sustain growth.
Important factors to watch:
By monitoring these aspects, businesses can take data-driven actions, safeguard profitability, and position themselves for sustainable growth in 2025/26.
With so many financial tools available, it’s important to know why ours stands out. This calculator is built to be simple, accurate, and practical for real-world use. Whether you’re a startup founder, investor, or business manager, it’s designed to give you instant insights without the complexity of spreadsheets.
Here’s what makes it different:
By using this calculator, you get more than just numbers, you get a clear view of your business model’s strengths and weaknesses, helping you plan smarter and grow sustainably.
The Unit Economics Calculator is for illustrative purposes only and should not be relied upon as financial or investment advice. Actual profitability and performance depend on factors such as pricing, customer acquisition costs, retention, variable costs, and overall market conditions.
This calculator is intended as a general guide to help founders, startups, and businesses understand their cost and revenue dynamics. It does not replace professional financial analysis, accounting, or investment due diligence.
For detailed insights and accurate projections, please consult a qualified accountant, financial adviser, or business consultant.
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