Accounting Unit Economics (Monthly) Calculator
Estimate monthly revenue, gross profit, operating profit, gross margin and customer acquisition cost from customer, pricing and cost data.
Overview
This monthly unit economics calculator estimates revenue, gross profit, operating profit, gross margin and customer acquisition cost from your customer movement, average revenue per customer and cost data. It is useful for reviewing how customer growth, churn, pricing and spending affect monthly performance.
How it works
The calculator estimates the number of customers served during the month by averaging the beginning and ending active customer counts. It multiplies this average by monthly revenue per customer to estimate revenue, then subtracts direct cost per customer to calculate gross profit. Gross margin is gross profit divided by revenue. Operating profit further subtracts sales and marketing spend and other operating costs. Customer acquisition cost is sales and marketing spend divided by newly acquired customers.
How to use this calculator
- 1Enter the number of active customers at the start of the month.
- 2Add the customers acquired and lost during the month.
- 3Enter your average monthly revenue and direct cost per active customer.
- 4Add sales and marketing spend plus other operating costs.
- 5Review revenue, margins, operating profit and customer acquisition cost.
Example Calculation
Beginning active customers
200
New customers acquired
30
Customers lost
10
Average monthly revenue per customer
$100
Direct cost per customer
$25
Sales and marketing spend
$3,000
Other monthly operating costs
$7,000
Estimated monthly revenue
$21,000
With 210 average active customers, estimated monthly revenue is $21,000. Gross profit is $15,750 at a 75.0% gross margin, customer acquisition cost is $100, and estimated operating profit is $5,750.
Frequently asked questions
What are unit economics?
Unit economics measure the revenue, direct costs and contribution associated with one customer or another business unit. They help show whether growth is likely to improve profitability.
How is monthly revenue calculated?
Monthly revenue equals the estimated average number of active customers during the month multiplied by average monthly revenue per customer.
Why does the calculator use average active customers?
Customers can be acquired and lost throughout a month. Averaging beginning and ending customers provides a simple estimate of the customers contributing to that month's revenue and direct costs.
What should be included in direct cost per customer?
Include costs that rise directly as you serve more customers, such as product fulfilment, payment processing, usage-based hosting, delivery or directly attributable support.
How is customer acquisition cost calculated?
Customer acquisition cost is sales and marketing spend divided by the number of new customers acquired in the same period.
Is operating profit the same as net profit?
Not necessarily. This calculator's operating profit subtracts the cost categories entered, but it does not include items such as taxes, interest, depreciation, amortisation or other non-operating income and expenses.
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Assumptions and warnings
Assumptions
- Revenue and direct costs are estimated using the average of beginning and ending active customers.
- Average monthly revenue per customer and direct cost per customer are assumed to be consistent throughout the month.
- Customer acquisition cost uses the full sales and marketing spend entered and only the new customers acquired during the month.
- Operating profit excludes taxes, interest, depreciation, amortisation, owner drawings and costs not entered in the calculator.
- Results are planning estimates and may differ from accounting records because of revenue recognition, timing and cost allocation policies.
Warnings
- This calculator provides an estimate only and is not accounting, tax or financial advice.
- Check that customer counts, revenue recognition and cost classifications match your business's accounting approach before using the results for decisions.