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Primary formula: segment contribution = price โˆ’ variable cost โˆ’ segment service cost

Educational only: Business decision support, not accounting, tax or legal advice.

Privacy: No account is required. Tool inputs and results stay in this browser. Anonymous categorical usage analytics send only governed page, tool, cluster and action identifiers; tool inputs and results are never sent. Error monitoring is disabled. Optional saved state stays only on this device.

Update policy: Reviewed when formulas or official dependencies change.

Scope: Market-neutral small-business planning using your own assumptions.

What this planner helps you decide

Best for

Owners comparing a standard offer with a segment-specific price and service cost.

Outputs

Contribution by segment, difference and volume needed to preserve contribution.

Start here

Enter the incremental service cost for the segment rather than hiding it in a generic discount.

Use a different tool when: Do not use this to compare retained contribution from direct and partner routes; use Channel Pricing Comparison Planner for that decision. Use this tool to compare segment pricing.

Price & margin

Customer Segment Pricing: contribution by segment

Contribution by segment, difference and volume needed to preserve contribution.

Amounts use the same currency as your inputs. No currency conversion is performed.

Customer Segment Pricing

Compare segment-specific contribution and service cost.

Your numbers stay in this browser

currency units

Standard ex-tax price.

currency units

Segment ex-tax price.

currency units

Shared cost per unit.

Baseline units.

Expected segment units.

currency units

Incremental per-unit service cost.

Decision result

Every result is derived by the registered pricing engine.

PDF and CSV exports stay on this device. Clean page links contain no inputs.
Segment contribution difference
-4,000.00
Standard Contribution Ex Tax
25,000.00
Segment Contribution Ex Tax
21,000.00
Required Segment Units
715

Scenario comparison

Each row names the assumption axis changed from the baseline.

ScenarioResultDifference
Current scenario-4,000.00Baseline
Lower Segment price-6,700.00-2,700.00
Higher Segment price-1,300.002,700.00

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.

Segment contribution difference

Contribution Delta Ex Taxsegment contribution โˆ’ standard contribution-4,000 , ex tax
Result-4,000.00

Uses the entered assumptions on one consistent ex-tax commercial basis. The engine retains full precision; presentation is bounded for readability.

Customer Segment Pricing Planner formulas โ†’
Inputs used by these formula steps
Contribution Delta Ex TaxStandard Price Ex Tax
100
Contribution Delta Ex TaxSegment Price Ex Tax
90
Contribution Delta Ex TaxUnit Variable Cost Ex Tax
50
Contribution Delta Ex TaxStandard Units
500
Contribution Delta Ex TaxSegment Units
600
Contribution Delta Ex TaxSegment Service Cost Per Unit Ex Tax
5

Standard Contribution Ex Tax

Standard Contribution Ex Tax(standard price โˆ’ unit variable cost) ร— standard units25,000 , ex tax
Result25,000.00

Uses the entered assumptions on one consistent ex-tax commercial basis. The engine retains full precision; presentation is bounded for readability.

Customer Segment Pricing Planner formulas โ†’
Inputs used by these formula steps
Standard Contribution Ex TaxStandard Price Ex Tax
100
Standard Contribution Ex TaxSegment Price Ex Tax
90
Standard Contribution Ex TaxUnit Variable Cost Ex Tax
50
Standard Contribution Ex TaxStandard Units
500
Standard Contribution Ex TaxSegment Units
600
Standard Contribution Ex TaxSegment Service Cost Per Unit Ex Tax
5

Segment Contribution Ex Tax

Segment Contribution Ex Tax(segment price โˆ’ variable cost โˆ’ segment service cost) ร— segment units21,000 , ex tax
Result21,000.00

Uses the entered assumptions on one consistent ex-tax commercial basis. The engine retains full precision; presentation is bounded for readability.

Customer Segment Pricing Planner formulas โ†’
Inputs used by these formula steps
Segment Contribution Ex TaxStandard Price Ex Tax
100
Segment Contribution Ex TaxSegment Price Ex Tax
90
Segment Contribution Ex TaxUnit Variable Cost Ex Tax
50
Segment Contribution Ex TaxStandard Units
500
Segment Contribution Ex TaxSegment Units
600
Segment Contribution Ex TaxSegment Service Cost Per Unit Ex Tax
5

Required Segment Units

Required Segment Unitsceil(standard contribution รท positive segment contribution per unit)715 operational units
Result715

Uses the entered assumptions on one consistent ex-tax commercial basis. The engine retains full precision; presentation is bounded for readability.

Customer Segment Pricing Planner formulas โ†’
Inputs used by these formula steps
Required Segment UnitsStandard Price Ex Tax
100
Required Segment UnitsSegment Price Ex Tax
90
Required Segment UnitsUnit Variable Cost Ex Tax
50
Required Segment UnitsStandard Units
500
Required Segment UnitsSegment Units
600
Required Segment UnitsSegment Service Cost Per Unit Ex Tax
5

Inputs used

Standard price
100
Segment price
90
Variable cost
50
Standard units
500
Segment units
600
Segment service cost
5
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.

Example: https://margin101.com/tools/customer-segment-pricing/?sv=1&segmentPriceExTax=90&segmentServiceCostPerUnitExTax=5&segmentUnits=600&standardPriceExTax=100&standardUnits=500&unitVariableCostExTax=50

ParameterMeaningUnitAllowed valuesPresenceDefault
segmentPriceExTaxSegment ex-tax price.currency units/target-segment unit, ex tax0 to 10000000Required90
segmentServiceCostPerUnitExTaxIncremental per-unit service cost.currency units/target-segment unit, ex tax0 to 10000000Required5
segmentUnitsExpected segment units.whole target-segment units/comparison period0 to 10000000Required600
standardPriceExTaxStandard ex-tax price.currency units/standard-segment unit, ex tax0 to 10000000Required100
standardUnitsBaseline units.whole standard-segment units/comparison period0 to 10000000Required500
unitVariableCostExTaxShared cost per unit.currency units/product unit, ex tax0 to 10000000Required50

Customer Segment Pricing: contribution by segment

The segment comparison exposes both price difference and incremental service cost per customer group.

Formula summary

Primary formula
segment contribution = price โˆ’ variable cost โˆ’ segment service cost

Read the full methodology

Data used here

  • The estimate uses your inputs and the general business formula documented in the methodology.

Decision checks

Act on the result

Approve segment pricing only with an explicit volume or retention objective.

Stress-test the decision

Stress-test the incremental service cost and the units required to preserve contribution.

When this estimate can be misleading

  • Results depend on the accuracy and consistent basis of your inputs.
  • The planner does not predict demand, competitor behaviour or supplier terms.
  • Use the result as educational business decision support, not accounting, tax or legal advice.
  • The segment comparison exposes both price difference and incremental service cost per customer group.

Educational estimate, not advice. See all assumptions & limitations โ†’

Guides to interpret the decision and its assumptions.

Frequently asked questions

How do I compare segment pricing?

Approve segment pricing only with an explicit volume or retention objective.

Which planning assumptions should I stress-test?

Compare a plausible alternative scenario and verify the decision-critical assumption that changes the plan most.