Unit Economics Calculator

Revenue

Quantity Sold:

Price per Item:

Total Revenue:

Cost

COGS:

Admin Costs:

Labor Costs:

Misc Costs:

Total Cost:

Profit

Net Profit:

Instructions:

Quantity Sold: Number of items sold in the last year
Price per Item: Average selling price of one item.
COGS: Cost of Goods Sold. Take all the purchase cost of raw materials and goods directly purchased
Admin Costs: Administrative expenses like rent, tax, permits etc
Labor Costs: Total labor expenses. Include all costs like transportation, benefits etc
Misc Costs: Miscellaneous expenses. Include all other costs that impact your production

Here's a simple example calculation

Quantity Sold: 100
Price per Item: $10
Total Revenue: 100 * $10 = $1000
COGS: $200, Admin Costs: $150, Labor Costs: $100, Misc Costs: $50
Total Cost: $200 + $150 + $100 + $50 = $500
Net Profit: Total Revenue - Total Cost = $1000 - $500 = $500

Here there's a 50% profit margin which is quite incredible for a consumer facing business

Frequently asked questions

Everything you need to know about the Unit Economics Calculator

What is a Unit Economics Calculator?

A Unit Economics Calculator is a valuable tool that empowers businesses to measure the profitability of their products or services on a per unit basis. It offers comprehensive insights into revenue, profit, and associated costs, aiding in informed business decision-making.

Why should you know about the health of your business?

Knowing the health of your business is crucial, and ZORP BI provides you with the analytics and insights to do just that. Identify your strengths, weaknesses, opportunity & threats in your business landscape.

What do you get out of a Unit Economics Calculator?

With a Unit Economics Calculator, businesses get a comprehensive picture of their financials. It helps quantify revenue, costs, and profit per unit, fostering strategic decisions about pricing, scaling, and investment. It's an essential tool for profitability analysis. But why stop there? ZORP's platform offers a holistic approach to manage all your operations effectively.

What is Revenue?

Revenue, also known as sales, is the total amount of money a business earns from its activities, predominantly through selling goods or services. It's the top line on an income statement and a key indicator of business performance and growth potential. ZORP not only helps you calculate revenue but also offers tools to increase it through efficient operations management

What is Profit?

Profit is the financial gain a business achieves after subtracting all expenses, including cost of goods sold, admin, labor, and miscellaneous costs from the total revenue. It is a crucial metric reflecting the overall earning efficiency and success of a business. Discover how ZORP's integrated solutions can maximize your profitability through process optimization.

What is Cost of Goods Sold (COGS)?

Cost of Goods Sold (COGS) refers to the direct costs of producing the goods or services that a company sells. This includes material costs, direct labor costs, and any other direct costs associated with the production of goods. It is a key factor in calculating gross profit. ZORP's platform helps manage inventory and supply chain to reduce these costs.

What is Admin Cost?

Admin cost, short for administrative cost, encompasses expenses related to the general operations of a business. This includes office rent, utilities, staff salaries, and office supplies. It is an integral part of the expense management of any business entity.

What is Labor Cost?

Labor Cost refers to the total remuneration employers pay their staff for their work. This includes wages, benefits, payroll taxes, and other employee-related expenses. Understanding labor costs is critical to maintaining profitability and competitive pricing.

What is Miscellaneous Cost?

Miscellaneous Cost involves any expenses that do not fit into traditional cost categories like COGS, admin, or labor costs. Examples might include marketing expenses, travel costs, or irregular expenses. Tracking these costs is vital for complete financial transparency.

What to do if your Net Profit is negative?

If your net profit is negative, it indicates a loss. Businesses should scrutinize their expenses, pricing, and operational efficiency. Cost-cutting, price adjustments, improving product quality, or enhancing marketing strategies could be ways to turn losses into profits.

What kind of businesses can use this calculator?

A Unit Economics Calculator can be utilized by businesses across all industries and sizes. Whether you're a startup looking to scale, a small business owner evaluating profitability, or a large enterprise optimizing your financial strategy, this tool offers invaluable insights.

Stop force-fitting your mission-control processes to standard solutions. Discover how.

What you get:

👉 Gain real time visibility and control

👉 Go live in weeks

👉 Customize to fit your ops

👉 Use only what you need, we do not disrupt your existing flows

What happens next?

1. We schedule a call as per your calendar

2. We discover what use cases ZORP can solve

3. We prepare a proposal

Thank you! Your submission has been received!

Oops! Something went wrong while submitting the form.

The EV market is new territory for operations. We looked at tons of tools out there, like Freshworks, Zoho, Salesforce, and Kapture. But I went all-in on ZORP, and here's why – it's super flexible, gets us going fast, and it's easy for anyone on the team to use right out of the gate.

Kaushal Atodaria

Product Manager: E-Pump Network

Calculate unit economics for your business