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Primary formula: ex-indirect tax revenue โˆ’ full expected order cost stack

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 planner helps you decide

Best for

Ecommerce sellers checking whether an order remains profitable after the full cost stack.

Outputs

Order contribution, contribution margin and break-even return or advertising thresholds.

Start here

Enter one representative order before indirect tax, then test fees, returns and ad cost separately.

Use a different tool when: Do not use this to compare self-fulfilment and third-party cost contracts at a chosen order volume; use Fulfilment Cost Comparison Planner for that decision. Use this tool to test order contribution after the full fee stack.

Commerce & operations

Ecommerce Order Profitability: order contribution

Order contribution, contribution margin and break-even return or advertising thresholds.

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

Enter the fees from your current provider contract

The example starts with illustrative marketplace and payment fee assumptions so the calculation is visible immediately. They are not current provider rates. Replace every percentage and fixed fee with the applicable values from your own contract.

Verify the applicable provider agreement and effective transaction statement before planning. Direct, negotiated and category-specific pricing can differ from a public plan.

Order assumptions

Build the full per-order cost stack before testing returns and channel sensitivity.

Your numbers stay in this browser

currency units

Amount paid by the customer for one order.

currency units

User-entered economic product cost per order, excluding indirect tax; confirm the accounting treatment for your records.

currency units

User-entered economic fulfilment cost per order, excluding indirect tax.

currency units

User-entered packaging and consumables cost per order, excluding indirect tax.

%

Percentage from your current contract, applied to the customer price including indirect tax.

%

Percentage from your payment contract, applied to the customer price including indirect tax.

Returns, advertising and fee recoveryOpen the assumptions you are less likely to change on every comparison.
%

Editable tax scenario; confirm the treatment of your sale.

currency units

Provider contract amount per transaction; enter the economic amount used in your contribution records.

currency units

Average economic acquisition spend allocated to one order on the same basis as your ex-indirect tax contribution costs.

%

Share of orders expected to be returned or refunded.

%

Share of product cost expected to be recovered.

currency units

User-entered economic shipping and handling cost for one return, excluding indirect tax.

%

Share of provider fees expected to be reversed.

Contribution per order

Live estimate from the assumptions shown.

PDF and CSV exports stay on this device. Clean page links contain no inputs.
Contribution / order17.40After modelled order costs
Contribution margin15.8%27.40 ad break-even
Expected return impact3.80Expected cost per order

Contribution margin 15.8%; advertising threshold 27.40; expected return impact 3.80.

Scenario comparison

Each row names the assumption axis changed from the baseline.

ScenarioResultDifference
Direct channel (0% marketplace fee)30.2712.87
Marketplace (12% fee)17.40Baseline
Marketplace, price +10% (121.00)26.248.84

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.

Contribution per order

Revenue ex indirect taxcustomer price inc indirect tax รท (1 + indirect tax rate)110/order ex indirect tax
Provider fee stackprice inc indirect tax ร— (marketplace fee + payment fee) + fixed fee16.80/order
Expected return impactmax(0, revenue loss + reverse logistics โˆ’ product recovery โˆ’ fee reversal)3.80/order
Contribution per orderrevenue ex indirect tax โˆ’ product โˆ’ shipping โˆ’ packaging โˆ’ fees โˆ’ ads โˆ’ return impact17.40/order
Result17.40

Ex-indirect tax product revenue less the user-entered economic cost stack, provider contract fees, advertising and expected return impact.

Review the contribution formula โ†’
Inputs used by these formula steps
Revenue ex indirect taxPrice Inc indirect tax
110
Revenue ex indirect taxindirect tax Rate
0
Provider fee stackPrice Inc indirect tax
110
Provider fee stackMarketplace Fee Rate
0.12
Provider fee stackPayment Fee Rate
0.03
Provider fee stackFixed Fee
0.3
Expected return impactRevenue Loss
5.5
Expected return impactReverse Logistics
0.6
Expected return impactProduct Recovery
1.88
Expected return impactFee Reversal
0.42
Contribution per orderPrice Inc indirect tax
110
Contribution per orderindirect tax Rate
0
Contribution per orderProduct Cost
50
Contribution per orderShipping Cost
10
Contribution per orderPackaging Cost
2
Contribution per orderMarketplace Fee Rate
0.12
Contribution per orderPayment Fee Rate
0.03
Contribution per orderPayment Fixed Fee
0.3
Contribution per orderAd Cost Per Order
10
Contribution per orderRefund Allowance Rate
0.05
Contribution per orderRecoverable Product Rate
0.75
Contribution per orderReverse Logistics Cost
12
Contribution per orderFee Reversal Rate
0.5

Contribution margin

Contribution per orderrevenue ex indirect tax โˆ’ product โˆ’ shipping โˆ’ packaging โˆ’ fees โˆ’ ads โˆ’ return impact17.40/order
Contribution margincontribution รท revenue ex indirect tax15.81%
Result15.8%

Contribution per order divided by revenue excluding indirect tax. Displayed to one decimal percentage point; the engine retains full precision.

Review the contribution margin formula โ†’
Inputs used by these formula steps
Contribution per orderPrice Inc indirect tax
110
Contribution per orderindirect tax Rate
0
Contribution per orderProduct Cost
50
Contribution per orderShipping Cost
10
Contribution per orderPackaging Cost
2
Contribution per orderMarketplace Fee Rate
0.12
Contribution per orderPayment Fee Rate
0.03
Contribution per orderPayment Fixed Fee
0.3
Contribution per orderAd Cost Per Order
10
Contribution per orderRefund Allowance Rate
0.05
Contribution per orderRecoverable Product Rate
0.75
Contribution per orderReverse Logistics Cost
12
Contribution per orderFee Reversal Rate
0.5
Contribution marginContribution
17.4
Contribution marginRevenue Ex indirect tax
110

Advertising break-even per order

Revenue ex indirect taxcustomer price inc indirect tax รท (1 + indirect tax rate)110/order ex indirect tax
Provider fee stackprice inc indirect tax ร— (marketplace fee + payment fee) + fixed fee16.80/order
Expected return impactmax(0, revenue loss + reverse logistics โˆ’ product recovery โˆ’ fee reversal)3.80/order
Break-even advertising cost per orderrevenue ex indirect tax โˆ’ product โˆ’ shipping โˆ’ packaging โˆ’ fees โˆ’ return impact; null when the raw ceiling is negative27.40/order
Result27.40

Maximum advertising cost per order before modelled contribution falls below zero.

Review the advertising break-even formula โ†’
Inputs used by these formula steps
Revenue ex indirect taxPrice Inc indirect tax
110
Revenue ex indirect taxindirect tax Rate
0
Provider fee stackPrice Inc indirect tax
110
Provider fee stackMarketplace Fee Rate
0.12
Provider fee stackPayment Fee Rate
0.03
Provider fee stackFixed Fee
0.3
Expected return impactRevenue Loss
5.5
Expected return impactReverse Logistics
0.6
Expected return impactProduct Recovery
1.88
Expected return impactFee Reversal
0.42
Break-even advertising cost per orderRevenue Ex indirect tax
110
Break-even advertising cost per orderProduct Cost
50
Break-even advertising cost per orderShipping Cost
10
Break-even advertising cost per orderPackaging Cost
2
Break-even advertising cost per orderFee Stack
16.8
Break-even advertising cost per orderExpected Return Impact
3.8

Expected return impact

Expected revenue lossrevenue ex indirect tax ร— refund rate5.50/order
Expected recovery creditsexpected product recovery credit + expected provider fee reversal credit2.30/order
Expected return impactmax(0, revenue loss + reverse logistics โˆ’ product recovery โˆ’ fee reversal)3.80/order
Result3.80

Expected economic cost per original order from the user-entered return, recovery and reverse-logistics assumptions.

Review the expected return impact formula โ†’
Inputs used by these formula steps
Expected revenue lossRevenue Ex indirect tax
110
Expected revenue lossRefund Rate
0.05
Expected recovery creditsProduct Recovery
1.88
Expected recovery creditsFee Reversal
0.42
Expected return impactRevenue Loss
5.5
Expected return impactReverse Logistics
0.6
Expected return impactProduct Recovery
1.88
Expected return impactFee Reversal
0.42

Inputs used

Customer price, including indirect tax
110.00
indirect tax rate
0%
Product cost, excluding indirect tax
50.00
Outbound shipping cost, excluding indirect tax
10.00
Packaging cost, excluding indirect tax
2.00
Marketplace fee
12%
Payment fee
3%
Fixed payment fee
0.30
Advertising cost per order
10.00
Expected return/refund rate
5%
Returned product recoverability
75%
Reverse logistics per return
12.00
Provider fee reversal rate
50%

Provider contract calculator

Select the contract you are checking, then enter its current fees. Provider names do not load a rate, tax basis or plan assumption.

currency units
currency units
currency units
%
currency units
%
currency units
currency units
%
transactions

Contribution per order

52.00

Effective fee rate

0%

Fees per order

0.00

Calculation details

View calculation detailsView the formulas and inputs used for these results.

Contribution per order

Contribution per ordersale price โˆ’ product cost โˆ’ fulfilment cost โˆ’ total provider fees52.00
Result52.00

All values are user-entered on one market-neutral ex-tax basis. The engine retains full precision before display formatting.

Owner fee formulas โ†’
Inputs used by these formula steps
Contribution per orderSale Price Ex Tax
100
Contribution per orderProduct Cost Ex Tax
40
Contribution per orderFulfilment Cost Ex Tax
8
Contribution per orderProvider Percentage Fee
0
Contribution per orderPayment Percentage Fee
0
Contribution per orderFixed Fee Per Order Ex Tax
0
Contribution per orderListing Fee Per Order Ex Tax
0
Contribution per orderAdvertising Per Order Ex Tax
0
Contribution per orderCurrency Conversion Rate
0
Contribution per orderOrders
100

Total fees per order

Provider contract fee stackpercentage fees + fixed fee + listing fee + advertising + currency conversion0.00
Result0.00

Listing, advertising and conversion assumptions remain explicit. The engine retains full precision before display formatting.

Owner fee formulas โ†’
Inputs used by these formula steps
Provider contract fee stackSale Price Ex Tax
100
Provider contract fee stackProduct Cost Ex Tax
40
Provider contract fee stackFulfilment Cost Ex Tax
8
Provider contract fee stackProvider Percentage Fee
0
Provider contract fee stackPayment Percentage Fee
0
Provider contract fee stackFixed Fee Per Order Ex Tax
0
Provider contract fee stackListing Fee Per Order Ex Tax
0
Provider contract fee stackAdvertising Per Order Ex Tax
0
Provider contract fee stackCurrency Conversion Rate
0
Provider contract fee stackOrders
100

Inputs used

sale price ex tax
100.00
product cost ex tax
40.00
fulfilment cost ex tax
8.00
provider percentage fee
0%
payment percentage fee
0%
fixed fee per order ex tax
0.00
listing fee per order ex tax
0.00
advertising per order ex tax
0.00
currency conversion rate
0%
orders
100
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/ecommerce-order-profitability/?sv=1&adCostPerOrder=10&feeReversalRate=0.5&gstRate=0&marketplaceFeeRate=0.12&packagingCost=2&paymentFeeRate=0.03&paymentFixedFee=0.3&priceIncGst=110&productCost=50&recoverableProductRate=0.75&refundAllowanceRate=0.05&reverseLogisticsCost=12&shippingCost=10

ParameterMeaningUnitAllowed valuesPresenceDefault
adCostPerOrderAverage economic acquisition spend allocated to one order on the same basis as your ex-indirect tax contribution costs.currency units/order, ex indirect tax0 to 10000000Required10
feeReversalRateShare of provider fees expected to be reversed.proportion of provider fees reversed after refund0 to 1Required0.5
gstRateEditable tax scenario; confirm the treatment of your sale.proportion of ex-tax price charged as indirect tax0 to 1Required0
marketplaceFeeRatePercentage from your current contract, applied to the customer price including indirect tax.proportion of customer price charged as marketplace fee0 to 0.99Required0.12
packagingCostUser-entered packaging and consumables cost per order, excluding indirect tax.currency units/order, ex indirect tax0 to 10000000Required2
paymentFeeRatePercentage from your payment contract, applied to the customer price including indirect tax.proportion of customer price charged as payment fee0 to 0.99Required0.03
paymentFixedFeeProvider contract amount per transaction; enter the economic amount used in your contribution records.currency units/transaction0 to 10000000Required0.3
priceIncGstAmount paid by the customer for one order.currency units/order, including indirect tax0.01 to 10000000Required110
productCostUser-entered economic product cost per order, excluding indirect tax; confirm the accounting treatment for your records.currency units/order, ex indirect tax0 to 10000000Required50
recoverableProductRateShare of product cost expected to be recovered.proportion of returned product cost recovered0 to 1Required0.75
refundAllowanceRateShare of orders expected to be returned or refunded.proportion of orders expected to be returned or refunded0 to 0.99Required0.05
reverseLogisticsCostUser-entered economic shipping and handling cost for one return, excluding indirect tax.currency units/return, ex indirect tax0 to 10000000Required12
shippingCostUser-entered economic fulfilment cost per order, excluding indirect tax.currency units/order, ex indirect tax0 to 10000000Required10

Ecommerce Order Profitability: order contribution

Use contribution per order to decide whether the current price and cost stack leave enough room for growth and overhead.

Formula summary

Primary formula
ex-indirect tax revenue โˆ’ full expected order cost stack

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

Investigate the largest controllable order cost or set a minimum contribution threshold before increasing sales spend.

Stress-test the decision

Retest higher returns, payment fees or advertising cost before relying on the base order economics.

When this estimate can be misleading

  • Contribution is not accounting net profit.
  • Provider fees and fee reversal behaviour are user-entered; verify them against your current contract.
  • Return rate, product recoverability and reverse logistics are bounded planning assumptions, not forecasts.
  • Use contribution per order to decide whether the current price and cost stack leave enough room for growth and overhead.

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

Guides to interpret the decision and its assumptions.

Frequently asked questions

How do I test order contribution after the full fee stack?

Investigate the largest controllable order cost or set a minimum contribution threshold before increasing sales spend.

Which planning assumptions should I stress-test?

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

How should I treat tax in this calculation?

Use the tax basis and rate shown by the tool, confirm that they fit the transaction and jurisdiction, and keep every input on one consistent basis.