Unit Economics Template
Free tool that helps to analyze fundamental unit economics by calculating margins, breakeven, and LTV (lifetime value, or customer lifetime value) based on inputs of recurring and transaction (one-time) revenues and cost of sales, churn rates, customer lifetime, and more. Prebuilt into the Standard Financial Model. Used by pre-seed and Seed stage companies.Download Template
- The Unit Economics tool is built to help entrepreneurs and investors forecast the cash flows and LTV on a single user (customer, subscriber, client, etc.) basis.
- Built to help entrepreneurs understand the mechanics behind unit economics.
- Creates a forecast of LTV based on inputs of recurring and transaction (one-time) revenues and cost of sales, churn rates, customer lifetime, and more.
How to use the template?
- 1. Any number in blue with a grey shaded background is an input (i.e. an assumption or data point that can be changed), anything in black is the result of a formula. Change blue at will, change anything in black with caution.
- 2. All cells and formulas are unlocked - as in all Foresight models - so that you can make edits as needed and completely understand what is going on.
- 3. All assumptions are illustrative only, do not assume they are market data or standard.
- 4. As with all templates, feel free to create your own model from scratch, using this as a guide.
- 5. The model is constructed to fit a wide variety of businesses, and therefore, some sections may or may not be relevant to yours, everything is open for you to edit and customize for your use.
Visit Foresight to get more instructions and videos on how to use the model.
Yes! This is absolutely free for you to download and use.
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