Quick answer
The Unit Economics Calculator shows profit per unit after variable costs, and payback on acquisition cost. How it works: Contribution = price − product cost − fees − shipping; Payback orders = CAC ÷ contribution. For example, with price per unit of $60, product cost of $22, and fees and payment processing of $4, the contribution per unit is $27.00.
How to use the Unit Economics Calculator
- Enter price per unit.
- Enter product cost.
- Enter fees and payment processing.
- Enter shipping and packaging.
- Enter acquisition cost per customer.
- Read contribution per unit and the breakdown. Use Share to send the exact numbers, or Print to save a PDF.
How it's calculated
- Contribution = price − product cost − fees − shipping
- Payback orders = CAC ÷ contribution
Worked example
With price per unit of $60, product cost of $22, fees and payment processing of $4, shipping and packaging of $7, and acquisition cost per customer of $35:
Contribution per unit: $27.00. Contribution margin: 45.0%.
Questions people ask
Why does payback matter?
If a customer needs three orders to pay back their acquisition cost, you only profit from the fourth order onward.