Unit Economics Model Template (What to Include)
A checklist for building a lightweight unit economics model you can keep accurate as costs change.
Quick checklist
- Define your unit of value (seat, call, GB-month).
- Separate variable costs from fixed overhead.
- Include churn, ARPA, and CAC in the model.
- Use at least two scenarios (p50 vs p90).
- Revisit the model quarterly.
Step-by-step
- Define the unit and write down assumptions.
- Estimate blended unit costs (infra + vendor pass-through).
- Add fixed overhead you need to recover.
- Calculate gross margin and contribution margin.
- Add CAC and payback targets.
- Validate outputs with real billing data.
Example model sections
- Revenue: ARPA, plan mix, expansion.
- Costs: infra, vendor fees, support, onboarding.
- Retention: churn, expansion, net retention.
- Acquisition: CAC, payback, channel mix.
Common mistakes
- Ignoring support costs that scale with customer count.
- Mixing gross and net churn assumptions.
- Failing to update cost inputs after vendor pricing changes.
