Unit Economics Handbook

Must-have guide for product managers and entrepreneurs, offering comprehensive knowledge on calculating financial metrics and optimizing profitability for various business models

Unit Economics Handbook | Product Map 3.3 & Daniil KhaninUnit Economics Handbook | Product Map 3.3 & Daniil KhaninUnit Economics Handbook | Product Map 3.3 & Daniil Khanin

All-in-one essential guide

evaluating and optimizing

unit economics

  • 01

    Explanations of key metrics with detailed calculations to understand unit economics basics

  • 02

    Financial metrics to assess and measure the profitability and sustainability of your business

  • 03

    Unit Economics Canvas and template to experiment with and refine your business models

  • 04

    Practical approaches and tools designed to improve unit economics and drive business growth

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WHY PRODUCT MAP?

Discover all essential metrics

with detailed insights and formulas

Unit 1
Unit Economics Calculation
Process
4
Key Concepts
4
David Skok’s Model
5
User Acquisition (UA)
6
Buyers (B)
6
Conversion to First Sale (C1)
7
Average Order Value (AOV)
7
Cost of Goods Sold (COGS)
8
Average Payment Count (APC)
8
Cost Per Acquisition (CPA)
9
Customer Acquisition Cost (CAC)
9
Customer Lifetime Value (CLTV)
10
Lifetime Value (LTV)
10
Contribution Margin (CM)
11
SECRET
Unit Economics Canvas
Template
13
Google Spreadsheet
13
Unit 2
Financial Metrics
Key Indicators
15
Revenue
15
Gross Merchandise Value (GMV)
16
Profit
16
EBITDA
16
Average Revenue Per User (ARPU)
17
Average Revenue Per Paying User (ARPPU)
17
Contribution Margin Ratio (CMR)
18
Gross Profit Margin (GPM)
18
Return on Investment (ROI)
18
Unit 3
Unit Economics Improvements
Evaluating the LTV / CAC ratio
21
Theory of Constraints
21
LTV / CAC ratio
22
General Approaches
23
Minimize Customer Acquisition Cost
24
Increase LTV
24
WHY PRODUCT MAP?

Master your finance and

unit economics skills with a unique canvas

The Unit Economics Canvas offers a clear and structured framework for analyzing and optimizing the financial performance and profitability of individual business units.

Unit Economics Canvas | Product Map 3.3
about the HANDBOOK

Meet the team and experts behind

the Unit Economics Handbook

About the Authors

Daniel Khanin

Daniil Khanin

Entrepreneur and CEO of d2decisions, specializing in startup financial modeling. Founder of ueCalc.com and author of the first book on unit economics in 2023.

The Product Map Team

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