Purpose and measurement boundary
For this unit economics case, the page answers a bounded measurement question: Combine selling price, variable fulfillment cost, acquisition cost, repeat orders, and retention probability into a customer-level contribution scenario. Its output should travel with the underlying pricing file.
With unit economics defined, save the baseline before negotiating or forecasting a change. A dated baseline shows which commercial fact produced the movement.
Calculation path
While examining unit economics, arithmetic follows the stated rule—Expected orders equal one plus repeat orders times retention probability; lifetime contribution subtracts acquisition cost from per-order contribution times expected orders. No unstated fee, rate, or adjustment is supplied by the page.
What belongs in the calculation
Revenue per order. In the unit economics file, Average collected revenue per order. Retain references for both Revenue per order and Variable cost per order beside the output.
Variable cost per order. As a unit economics assumption, Product, fulfillment, and variable service cost. Compare Variable cost per order with Acquisition cost per customer inside the unit economics boundary and its selected currency.
Acquisition cost per customer. A separate unit economics option needs another value because Marketing and sales cost allocated to one acquired customer. Align the date attached to Acquisition cost per customer with the timing assigned to Potential repeat orders.
Potential repeat orders. The unit economics evidence defines it this way: Additional orders in the modeled horizon. Document whether Potential repeat orders follows a different unit economics allocation or rounding rule from Probability of each repeat order.
Probability of each repeat order. The pricing file supporting unit economics should confirm it. Expected realization percentage applied to repeats. Trace Probability of each repeat order independently from Revenue per order before another reviewer receives the unit economics file.
An example you can verify
Numbers supplied for the check: Revenue per order = $95; Variable cost per order = $44; Acquisition cost per customer = $70; Potential repeat orders = 4 orders; Probability of each repeat order = 55%.
From a unit economics standpoint, use the sample to confirm the interface, not the business forecast. A later run should replace every illustrative amount that matters.
Separate movement from meaning
While examining unit economics, compare the output with the original offer, not with an unlabeled benchmark. Different definitions often create larger differences than arithmetic.
Keep Revenue per order tied to its original evidence while negotiating Probability of each repeat order. That separation avoids rewriting history to fit a proposal.
Use unit economics to illuminate the connection between Revenue per order and Probability of each repeat order, not to conceal a gap between their evidence or measurement dates.
After reviewing unit economics, distinguish the numerical finding from the commercial response. Different teams may act on the same figure in different ways.
A second reader of unit economics should note that when target profit price affects the decision, compare this result with a fresh Target Profit Price Calculator run.
For this unit economics case, several commercial questions remain external to the arithmetic. Cohort timing, discounting, support cost, refunds, churn shape, and acquisition-channel differences are excluded.
With unit economics defined, document any manual allocation or conversion outside the form; otherwise the result cannot be reconstructed reliably.
Notes for later review
What controls if a contract differs?
From a unit economics standpoint, the signed agreement and current records control; the page is only a planning worksheet.
Does the page supply a benchmark?
A second reader of unit economics should note that no. Any target or comparison standard must be selected and documented by the user.