1 min lesson
The unit metrics and what each answers
Describe what "A unit metric turns it into a lever" changes in practice.
Step 1 of 3
The unit metrics and what each answersthe language Finance and ML share
Raw spend is a scary number with no decision attached. A unit metric turns it into a lever. Know which metric answers which question before someone asks.
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Advanced table
Reference table
- Unit metric
- Cost per inference / request
- What it answers
- Is a single model call getting cheaper or more expensive as we change routing?
- Who leans on it
- ML / Research
- Unit metric
- Cost per token
- What it answers
- How does prompt and output length drive spend - and what does a longer context window cost us?
- Who leans on it
- ML + Finance
- Unit metric
- Cost per active user
- What it answers
- Does each new user add margin or erode it as we grow?
- Who leans on it
- Finance + leadership
- Unit metric
- Gross margin / COGS %
- What it answers
- Is the business model healthy as inference scales with DAU?
- Who leans on it
- Finance + founders
| Unit metric | What it answers | Who leans on it |
|---|---|---|
| Cost per inference / request | Is a single model call getting cheaper or more expensive as we change routing? | ML / Research |
| Cost per token | How does prompt and output length drive spend - and what does a longer context window cost us? | ML + Finance |
| Cost per active user | Does each new user add margin or erode it as we grow? | Finance + leadership |
| Gross margin / COGS % | Is the business model healthy as inference scales with DAU? | Finance + founders |
A strong TPM moves fluently up this ladder, from a single request to the board-level margin story.