Act on the result
Use customer profit and customer profit margin to decide whether to retain, reprice or change service scope for the cohort.
Educational only: Business decision support, not accounting, tax or legal advice.
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Update policy: Reviewed when formulas or official dependencies change.
Scope: Market-neutral small-business planning using your own assumptions.
What this diagnostic helps you decide
Best for
Owners measuring customer or cohort profit after service effort.
Outputs
Gross contribution, customer profit, service-cost share and margin.
Start here
Attribute delivery, support, acquisition and retention costs on a consistent period basis.
Use a different tool when: Do not use this to identify which operating-cost layer changes profit after gross profit; use Gross to Operating Profit Bridge for that decision. Use this tool to diagnose customer profitability after service costs.
Profit & break-even
Customer Profitability: gross contribution
Gross contribution, customer profit, service-cost share and margin.
Amounts use the same currency as your inputs. No currency conversion is performed.
Customer Profitability Diagnostic
Measure customer profit after delivery, service, acquisition and retention costs.
Your numbers stay in this browser
Revenue attributed to the customer or cohort. Use one consistent ex-tax monetary basis.
Direct fulfilment and delivery cost. Use one consistent ex-tax monetary basis.
Support and account-service cost. Use one consistent ex-tax monetary basis.
Attributed acquisition and retention spend. Use one consistent ex-tax monetary basis.
Decision result
Each output is bound to its own registered engine formula step.
PDF and CSV exports stay on this device. Clean page links contain no inputs.
- Customer profit
- 30,000.00
- Gross Contribution Ex Tax
- 50,000.00
- Service Cost Share
- Customer Profit Margin
- 30%
Scenario comparison
Each row names the assumption axis changed from the baseline.
ScenarioResultDifference
Current scenario30,000.00Baseline
Lower Service cost30,600.00600.00
Higher Service cost29,400.00-600.00
Save these results, change an input, then compare the updated figures with this baseline.
The baseline is temporary in this tab and is not added to shared scenario links or generated reports.
Calculation details
View calculation detailsView the formulas and inputs used for these results.
Customer profit
Customer Profit Ex Tax
gross contribution − service cost − acquisition and retention cost30,000.00Result30,000.00
Reports money for the entered planning period using the declared ex-tax revenue, cost and capacity basis. The engine retains full precision; only presentation is rounded.
Customer Profitability Diagnostic formulas →Inputs used by these formula steps
- Customer Profit Ex TaxCustomer Revenue Ex Tax
- 100,000
- Customer Profit Ex TaxProduct And Delivery Costs Ex Tax
- 50,000
- Customer Profit Ex TaxService Cost Ex Tax
- 12,000
- Customer Profit Ex TaxAcquisition And Retention Cost Ex Tax
- 8,000
Gross Contribution Ex Tax
Gross Contribution Ex Tax
customer revenue − product and delivery costs50,000.00Result50,000.00
Reports money for the entered planning period using the declared ex-tax revenue, cost and capacity basis. The engine retains full precision; only presentation is rounded.
Customer Profitability Diagnostic formulas →Inputs used by these formula steps
- Gross Contribution Ex TaxCustomer Revenue Ex Tax
- 100,000
- Gross Contribution Ex TaxProduct And Delivery Costs Ex Tax
- 50,000
- Gross Contribution Ex TaxService Cost Ex Tax
- 12,000
- Gross Contribution Ex TaxAcquisition And Retention Cost Ex Tax
- 8,000
Service Cost Share
Service Cost Share
service cost / customer revenue0.12 percentResult12%
Reports percent for the entered planning period using the declared ex-tax revenue, cost and capacity basis. The engine retains full precision; only presentation is rounded.
Customer Profitability Diagnostic formulas →Inputs used by these formula steps
- Service Cost ShareCustomer Revenue Ex Tax
- 100,000
- Service Cost ShareProduct And Delivery Costs Ex Tax
- 50,000
- Service Cost ShareService Cost Ex Tax
- 12,000
- Service Cost ShareAcquisition And Retention Cost Ex Tax
- 8,000
Customer Profit Margin
Customer Profit Margin
customer profit / customer revenue0.3 percentResult30%
Reports percent for the entered planning period using the declared ex-tax revenue, cost and capacity basis. The engine retains full precision; only presentation is rounded.
Customer Profitability Diagnostic formulas →Inputs used by these formula steps
- Customer Profit MarginCustomer Revenue Ex Tax
- 100,000
- Customer Profit MarginProduct And Delivery Costs Ex Tax
- 50,000
- Customer Profit MarginService Cost Ex Tax
- 12,000
- Customer Profit MarginAcquisition And Retention Cost Ex Tax
- 8,000
Inputs used
- Customer revenue
- 100,000.00
- Product and delivery costs
- 50,000.00
- Service cost
- 12,000.00
- Acquisition and retention cost
- 8,000.00
Open this calculator with preset values
This calculator supports documented, shareable scenario URLs. Compatible assistants and applications can construct links using the parameters below.
Scenario links contain only allowlisted numeric and closed-choice inputs shown in the URL; Margin101 excludes free text and identifying fields. Anyone you share the URL with can read those numbers, so do not include private or identifying data.
| Parameter | Meaning | Unit | Allowed values | Presence | Default |
|---|---|---|---|---|---|
| acquisitionAndRetentionCostExTax | Attributed acquisition and retention spend. Use one consistent ex-tax monetary basis. | currency units/planning period, ex tax | 0 to 100000000 | Required | 8000 |
| customerRevenueExTax | Revenue attributed to the customer or cohort. Use one consistent ex-tax monetary basis. | currency units/planning period, ex tax | 0 to 100000000 | Required | 100000 |
| productAndDeliveryCostsExTax | Direct fulfilment and delivery cost. Use one consistent ex-tax monetary basis. | currency units/planning period, ex tax | 0 to 100000000 | Required | 50000 |
| serviceCostExTax | Support and account-service cost. Use one consistent ex-tax monetary basis. | currency units/planning period, ex tax | 0 to 100000000 | Required | 12000 |
Customer Profitability: gross contribution
Customer profit measures the entered customer or cohort after delivery, service, acquisition and retention costs.
Formula summary
- Primary formula
- customer profit = revenue − product and delivery costs − service cost − acquisition and retention cost
Data used here
- The estimate uses your inputs and the general business formula documented in the methodology.
Decision checks
Stress-test the decision
Retest service cost and acquisition and retention cost in currency units for the same customer or cohort period, ex tax.
When this estimate can be misleading
- Results depend on complete, consistently classified inputs.
- Demand, timing, quality and strategic fit remain separate decisions.
- This is educational business decision support, not accounting, tax, legal or financial advice.
- Customer profit measures the entered customer or cohort after delivery, service, acquisition and retention costs.
Educational estimate, not advice. See all assumptions & limitations →
Related reading
Guides to interpret the decision and its assumptions.
- Cost per Job, Order or Customer: Pick the Denominator
Match the denominator to the cost pool and decision, reconcile total cost and avoid comparing unlike per-object figures.
Read guide
Frequently asked questions
How do I diagnose customer profitability after service costs?
Use customer profit and customer profit margin to decide whether to retain, reprice or change service scope for the cohort.
What should I investigate after the diagnostic?
Use the diagnostic to identify which record or operating driver needs investigation; it does not establish the cause by itself.