Unit Economics Calculator

This calculator shows your true profit per order after all costs and fees are deducted. It is one of the most important metrics for ecommerce, advertising, and business growth.

If your unit economics are positive, your business can scale profitably. If they are negative, increasing sales will increase losses.

This tool helps you understand whether your pricing, costs, and marketing are working together to create a sustainable business.

Result Explanation

The result shows your profit per order and margin after all direct costs and fees are deducted.

This is the key metric for advertising decisions. If your profit per order is lower than your cost to acquire a customer (CAC), your business is losing money.

How It Works

Profit = Price − Cost − Fees

Margin = Profit ÷ Price × 100

This includes all direct transaction costs to give a realistic view of profitability.

Strategy & Scaling Insight

Unit economics determine whether your business can scale. If you are running paid ads, your profit per unit must exceed your customer acquisition cost.

For example, if you make £12 per sale but your ads cost £15 per customer, you lose £3 per order. Scaling this will increase losses.

Strong unit economics allow you to scale confidently, reinvest in growth, and increase total profit.

Examples

Example 1:
Price £40, Cost £18, Fees £6 → Profit £16 → Margin 40%

Example 2:
Price £25, Cost £14, Fees £3.50 → Profit £7.50 → Margin 30%

Example 3 (Ads):
Profit £10, Ad cost £12 → Loss £2 per sale

Related Calculators

• Break-even Revenue
• Contribution Margin
• Target Profit
• Margin Calculator
• ROI Calculator

Frequently Asked Questions

What are unit economics?

Profit per sale after all costs.

Why are they important?

They determine scalability.

Can I scale negative unit economics?

No, this increases losses.