Unit Economics Pro

Unit Economics Pro: practical plan

Quick unit-economics view

Gross profit per month = $40 × 75% =

$30. Simple CAC payback = $180 / $30 =

6 months, assuming stable margin, full collections and no other variable costs.

A rough revenue LTV using 1/churn is $40 / 0.04 = $1,000, and gross-profit LTV would be about $750. This simplified estimate assumes constant churn, no expansion/contraction, no discounting, and a stable cohort—often unrealistic.

Validate before using

• Confirm CAC includes sales labor, channel costs and onboarding.
• Use gross margin after support, hosting, payment fees and refunds.
• Compare churn by signup cohort and tenure.
• Check annual plans, failed payments and reactivations.
• Use a fixed observation window and report sample size.

Better analysis

Calculate cohort contribution over time and payback distribution. Stress-test higher churn, lower margin and longer sales cycles.

Decision

Do not scale acquisition from a single average. Compare payback to cash runway and retention evidence. Document assumptions and review with finance before investor or budget commitments.

Measurement and review

Record the baseline, source, date range, denominator and owner. Use one primary measure plus quality guardrails; compare like-for-like cohorts and disclose missing data. Treat estimates as scenarios, not observed outcomes.

Risks and controls

Check relevance, consent, disclosure, workload and downside before scaling. Keep an evidence trail, obtain human review for material commitments, and pause if trust, quality or compliance signals deteriorate.

Next steps

1. Confirm the goal, audience and available capacity.
2. Gather the minimum evidence for a first test.
3. Assign an owner, budget and review date.
4. Run a small pilot, record outcomes and decide whether to iterate, expand or stop.