Gross revenue
$68.00Calculator
Contribution Margin Calculator
Calculate what each order contributes after variable costs like COGS, fulfillment, fees, ads, and returns.
Results
Order economics summary
All outputs update immediately as assumptions change.
Net revenue
$61.20Contribution profit
$29.91Profit after ad spend
$15.91Output summary
Use this table to inspect the commercial outcome before fixed overhead.
| Gross revenue | $68.00 |
|---|---|
| Net revenue | $61.20 |
| Total variable costs | $45.29 |
| Contribution profit | $29.91 |
| Contribution margin percent | 26.0% |
| Profit after ad spend | $15.91 |
Cost breakdown by category
Expected returns cost is rate-based. The rest are modeled as per-order costs.
| COGS | $18.00 |
|---|---|
| Inbound freight | $1.80 |
| Packaging | $1.25 |
| Fulfillment | $5.95 |
| Payment fees | $2.07 |
| Platform fees | $0.00 |
| Returns allowance | $0.72 |
| Ad spend | $14.00 |
| Other variable cost | $1.50 |
How it works
- Contribution margin extends past gross margin to include the costs that move with the order.
- Relevant variable costs usually include product cost, fulfillment, transaction fees, returns allowance, and ad spend.
- Returns and ad spend materially change what an order contributes, even when gross margin looks acceptable.
- This calculator stops before fixed overhead such as salaries, rent, and software.
Common mistakes
- Ignoring returns because they do not hit every single order.
- Excluding payment fees or platform fees from the order model.
- Mixing fixed overhead into per-order variable economics.
- Using gross margin as a proxy for contribution margin.