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Unit Economics

Unit Economics refers to measuring the revenues and costs associated with an individual customer. It’s the atomic-level view of the business. Viewing the company’s performance in this way will allow you to understand profitability on a per-customer basis and measure your performance with established benchmarks. Typical examples are Customer Acquisition Costs (CAC) and Customer Lifetime Value (LTV).

Unit Economics refers to measuring the revenues and costs associated with an individual customer. It’s the atomic-level view of the business. Viewing the company’s performance in this way will allow you to understand profitability on a per-customer basis and measure your performance with established benchmarks. Typical examples are Customer Acquisition Costs (CAC) and Customer Lifetime Value (LTV).