How to calculate unit economics?

Unit economics is the calculation of revenues and costs per unit of product or service, allowing to understand how profitable a business model is at the level of an individual customer or transaction.

Main steps for calculation:

1. Define the unit of measurement (e.g., one user, one sale).
2. Calculate revenue per unit (e.g., average revenue per user — ARPU).
3. Account for variable costs associated with this unit (e.g., service costs, marketing per customer).
4. Subtract costs from revenues to get profit per unit.

Example:

• Revenue from one user: 1000 rubles per month
• Variable costs per user: 400 rubles

Unit economics = 1000 - 400 = 600 rubles profit per user per month.

This metric helps evaluate product efficiency and make decisions about scaling or changing monetization strategies.