Finance

Unit Economics

Revenue and cost per unit of your business

Definition

Unit economics describes the direct revenues and costs associated with a particular business model expressed on a per-unit basis. For SaaS, the key unit economics are: LTV, CAC, and LTV:CAC ratio.

📌 Example

If LTV is $5,000 and CAC is $1,000, your LTV:CAC ratio is 5:1 — generally considered healthy for SaaS.