# Unit Economics

> Analyze unit economics — contribution per customer/order/unit, CAC, LTV, payback — to assess whether a business model scales profitably. Use when evaluating growth efficiency, pricing, channel spend, or product-line viability.

- Skill: `itsual/unit-economics` (Agent Skill)
- Install (CLI): `npx skillmds@latest add itsual/unit-economics`
- Raw SKILL.md: https://api.skillmd.com/api/skills/itsual/unit-economics/raw
- Safety review: pending
- Works with: Claude Code, Claude.ai, OpenAI Codex
- Category: Marketing & Growth
- Author: itsual (https://skillmd.com/u/itsual)
- Updated: 2026-09-21
- Page: https://skillmd.com/skills/itsual/unit-economics

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# Unit Economics

## Overview

Unit economics answer whether each incremental customer, order, or unit creates value after direct costs and acquisition spend. They are the bridge between growth and profitability.

## When to Use

- SaaS, marketplace, and consumer growth decisions
- Pricing and packaging changes
- Channel and CAC efficiency reviews
- New product or segment viability

## Core Metrics

- Contribution margin per unit
- CAC (customer acquisition cost)
- LTV (lifetime value) and LTV:CAC
- Payback period
- Cohort retention and expansion effects

## Principles

- Define the “unit” clearly (customer, account, order, ride)
- Fully load costs that scale with the unit
- Cohort-based LTV beats blended averages when retention varies
- Good unit economics can still fail with bad overhead or capital structure

## Verification

- [ ] Unit definition and cost allocation are explicit
- [ ] CAC and LTV methodology is consistent over time
- [ ] Decisions reference payback and contribution, not vanity growth