Definition
Unit margin is contribution per unit (customer/order). It drives scalability and informs allowable acquisition cost.
Measured as
Measure Unit Margin with the same date, unit basis, and accounting or policy definitions used in the rest of your model.
Operator takeaway
- Tie Unit Margin to the same balance-sheet date, scenario, and decision memo you are using elsewhere in the model.
- Document which claims, costs, or adjustments your team includes before comparing numbers across forecasts, covenants, or valuation work.
Next decision
- Decide whether Unit Margin belongs in cash planning, valuation, or debt monitoring so the number is used in the right model.
- If the number changes, trace the timing, policy, or balance-sheet assumption behind it before you react.