Startup Metrics

Unit Economics

Definition

What is Unit Economics?

Revenue, cost, and profit relationships measured per customer, transaction, or unit.

Example in practice

A delivery business compares contribution per order with acquisition cost.

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The rate at which a company spends cash, commonly measured monthly.

The estimated time before cash runs out at the current burn rate.

Recurring subscription revenue normalised to one month.

Money set aside rather than spent, often for emergencies or future goals.

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