Unit Economics Calculator

What it does

Introduction The Unit Economics Calculator is a free, web-based tool for UK direct-to-consumer brands to model profitability at the SKU or narrow SKU-range level. Marketers, finance partners and ecommerce operators use it to convert headline revenue and ROAS into contribution margins and breakeven targets before changing price, promos or ad spend. P&L waterfall (CM1 → CM2 → CM3) Enter price, COGS, fulfilment and transaction costs to see a step-by-step margin waterfall from gross revenue down to net contribution. The calculator separates CM1, CM2 and CM3 so you can observe how each cost layer reduces the margin available to cover fixed costs and profit. Breakeven ROAS at multiple margin levels The tool computes breakeven ROAS thresholds tied to CM1, CM2 and CM3, allowing marketers to translate desired profit or contribution targets into concrete bidding targets for channels such as Google Ads and Meta. These thresholds update as inputs change. Returns and BNPL modelling You can add return rates, returns handling costs and BNPL adoption and fee assumptions (BNPL providers are cited as examples) to see how returns and buy-now-pay-later behaviour reduce net revenue per kept order. The fields let you model write-offs and recovery costs explicitly. Scenario planning and sensitivity charts Run what-if scenarios for price changes, promotions, AOV shifts, volume and fulfilment swaps and view sensitivity charts that show profit versus volume and breakeven unit levels. Vertical pages include additional LTV/NCAC and payback modelling where applicable. Per-SKU focus and data handling The calculator is designed for a representative SKU or a narrow range of similar SKUs; blended inputs across very different products will produce blended outputs that may be less actionable. Blank fields apply benchmark defaults, which the interface indicates.