MCPInstall

unit-economics

Analyze unit economics for PE targets — ARR cohorts, LTV/CAC, net retention, payback periods, revenue quality, and margin waterfall. Essential for software/SaaS, recurring revenue, and subscription businesses. Use when evaluating revenue quality, building a cohort analysis, or assessing customer economics. Triggers on "unit economics", "cohort analysis", "ARR analysis", "LTV CAC", "net retention", "revenue quality", or "customer economics".

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Install

Works with every agent the skills CLI supports.

npx skills add https://github.com/anthropics/financial-services --skill unit-economics
  1. 01

    Install

    Run the command in your project. The CLI asks which agents to install for.

  2. 02

    Describe the task

    Ask your agent for something this skill covers. It loads unit-economics automatically when relevant.

  3. 03

    Review the result

    The agent follows the SKILL.md steps, scripts and references bundled with the skill.

SKILL.md

The instructions your agent reads when the skill is triggered.

Unit Economics Analysis

Workflow

Step 1: Identify Business Model

Determine the revenue model to tailor the analysis:

  • SaaS / Subscription: ARR, net retention, cohorts
  • Recurring services: Contract value, renewal rates, upsell
  • Transaction / usage-based: Revenue per transaction, volume trends, take rate
  • Hybrid: Break down by revenue stream

Step 2: Core Metrics

ARR / Revenue Quality

  • ARR bridge: Beginning ARR → New → Expansion → Contraction → Churn → Ending ARR
  • ARR by cohort: Vintage analysis — how does each annual cohort retain and grow?
  • Revenue concentration: Top 10/20/50 customers as % of total
  • Revenue by type: Recurring vs. non-recurring vs. professional services
  • Contract structure: ACV distribution, multi-year %, auto-renewal %

Customer Economics

  • CAC (Customer Acquisition Cost): Total S&M spend / new customers acquired
  • LTV (Lifetime Value): (ARPU × Gross Margin) / Churn Rate
  • LTV:CAC ratio: Target >3x for healthy businesses
  • CAC payback period: Months to recover acquisition cost
  • Blended vs. segmented: Break down by customer segment (enterprise vs. SMB vs. mid-market)

Retention & Expansion

  • Gross retention: % of beginning ARR retained (excludes expansion)
  • Net retention (NDR): % of beginning ARR retained including expansion
  • Logo churn: % of customers lost
  • Dollar churn: % of revenue lost (often different from logo churn)
  • Expansion rate: Upsell + cross-sell as % of beginning ARR

Cohort Analysis

Build a cohort matrix showing:

CohortYear 0Year 1Year 2Year 3Year 4
2020$1.0M$1.1M$1.2M$1.1M
2021$1.5M$1.7M$1.8M
2022$2.0M$2.3M
2023$3.0M

Show both absolute $ and indexed (Year 0 = 100%) views.

Margin Waterfall

  • Revenue → Gross Profit → Contribution Margin → EBITDA
  • Fully loaded unit economics: what does it cost to acquire, serve, and retain a customer?
  • Gross margin by revenue stream (subscription vs. services vs. other)

Step 3: Benchmarking

Compare unit economics to relevant benchmarks:

  • SaaS Rule of 40: Growth rate + EBITDA margin > 40%
  • SaaS Magic Number: Net new ARR / prior period S&M spend > 0.75x
  • NDR benchmarks: Best-in-class >120%, good >110%, concerning <100%
  • LTV:CAC: Best-in-class >5x, good >3x, concerning <2x
  • Gross retention: Best-in-class >95%, good >90%, concerning <85%
  • CAC payback: Best-in-class <12mo, good <18mo, concerning >24mo

Step 4: Revenue Quality Score

Synthesize into a revenue quality assessment:

FactorScore (1-5)Notes
Recurring %
Net retention
Customer concentration
Cohort stability
Growth durability
Margin profile
Overall

Step 5: Output

  • Excel workbook with ARR bridge, cohort matrix, unit economics dashboard
  • Summary slide with key metrics and benchmarks
  • Red flags and areas for further diligence

Important Notes

  • Always ask for raw customer-level data if available — aggregate metrics can hide problems
  • NDR above 100% can mask high gross churn if expansion is strong enough — always show both
  • Cohort analysis is the single most important view for revenue quality — push for this data
  • Differentiate between contracted ARR and actual recognized revenue
  • For usage-based models, focus on consumption trends and expansion patterns rather than traditional ARR metrics
  • Professional services revenue should be evaluated separately — it's not recurring and margins are typically lower

FAQ

What does the unit-economics skill do?

Analyze unit economics for PE targets — ARR cohorts, LTV/CAC, net retention, payback periods, revenue quality, and margin waterfall. Essential for software/SaaS, recurring revenue, and subscription businesses. Use when evaluating revenue quality, building a cohort analysis, or assessing customer economics. Triggers on "unit economics", "cohort analysis", "ARR analysis", "LTV CAC", "net retention", "revenue quality", or "customer economics".

How do I install unit-economics?

Run npx skills add https://github.com/anthropics/financial-services --skill unit-economics in your project. The skills CLI detects the agents you use and copies the skill into the right folder. For Claude Code you can also place the skill folder at ~/.claude/skills/unit-economics/ (personal) or .claude/skills/unit-economics/ (project).

Which AI agents can use unit-economics?

Any agent that supports the open Agent Skills format (a folder with a SKILL.md file), including Claude Code, Codex, Cursor, GitHub Copilot, Gemini CLI, Windsurf, Cline, OpenCode and more.

Is unit-economics safe to install?

No partner security audit is available yet. Skills can run commands and scripts, so read the SKILL.md and any bundled files before installing.

Who maintains unit-economics?

It is published by anthropics in anthropics/financial-services, and it is an official skill from the maker of the technology it covers. It has 1,321 recorded installs.

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