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
Amount paid by the customer for one order.
User-entered economic product cost per order, excluding indirect tax; confirm the accounting treatment for your records.
User-entered economic fulfilment cost per order, excluding indirect tax.
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.
Provider contract amount per transaction; enter the economic amount used in your contribution records.
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.
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.
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.
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
customer price inc indirect tax รท (1 + indirect tax rate)110/order ex indirect taxprice inc indirect tax ร (marketplace fee + payment fee) + fixed fee16.80/ordermax(0, revenue loss + reverse logistics โ product recovery โ fee reversal)3.80/orderrevenue ex indirect tax โ product โ shipping โ packaging โ fees โ ads โ return impact17.40/orderEx-indirect tax product revenue less the user-entered economic cost stack, provider contract fees, advertising and expected return impact.
Review the contribution formula โInputs 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
revenue ex indirect tax โ product โ shipping โ packaging โ fees โ ads โ return impact17.40/ordercontribution รท revenue ex indirect tax15.81%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 โInputs 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
customer price inc indirect tax รท (1 + indirect tax rate)110/order ex indirect taxprice inc indirect tax ร (marketplace fee + payment fee) + fixed fee16.80/ordermax(0, revenue loss + reverse logistics โ product recovery โ fee reversal)3.80/orderrevenue ex indirect tax โ product โ shipping โ packaging โ fees โ return impact; null when the raw ceiling is negative27.40/orderMaximum advertising cost per order before modelled contribution falls below zero.
Review the advertising break-even formula โInputs 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
revenue ex indirect tax ร refund rate5.50/orderexpected product recovery credit + expected provider fee reversal credit2.30/ordermax(0, revenue loss + reverse logistics โ product recovery โ fee reversal)3.80/orderExpected economic cost per original order from the user-entered return, recovery and reverse-logistics assumptions.
Review the expected return impact formula โInputs 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.
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
sale price โ product cost โ fulfilment cost โ total provider fees52.00All values are user-entered on one market-neutral ex-tax basis. The engine retains full precision before display formatting.
Owner fee formulas โInputs 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
percentage fees + fixed fee + listing fee + advertising + currency conversion0.00Listing, advertising and conversion assumptions remain explicit. The engine retains full precision before display formatting.
Owner fee formulas โInputs 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.
| Parameter | Meaning | Unit | Allowed values | Presence | Default |
|---|---|---|---|---|---|
| adCostPerOrder | Average economic acquisition spend allocated to one order on the same basis as your ex-indirect tax contribution costs. | currency units/order, ex indirect tax | 0 to 10000000 | Required | 10 |
| feeReversalRate | Share of provider fees expected to be reversed. | proportion of provider fees reversed after refund | 0 to 1 | Required | 0.5 |
| gstRate | Editable tax scenario; confirm the treatment of your sale. | proportion of ex-tax price charged as indirect tax | 0 to 1 | Required | 0 |
| marketplaceFeeRate | Percentage from your current contract, applied to the customer price including indirect tax. | proportion of customer price charged as marketplace fee | 0 to 0.99 | Required | 0.12 |
| packagingCost | User-entered packaging and consumables cost per order, excluding indirect tax. | currency units/order, ex indirect tax | 0 to 10000000 | Required | 2 |
| paymentFeeRate | Percentage from your payment contract, applied to the customer price including indirect tax. | proportion of customer price charged as payment fee | 0 to 0.99 | Required | 0.03 |
| paymentFixedFee | Provider contract amount per transaction; enter the economic amount used in your contribution records. | currency units/transaction | 0 to 10000000 | Required | 0.3 |
| priceIncGst | Amount paid by the customer for one order. | currency units/order, including indirect tax | 0.01 to 10000000 | Required | 110 |
| productCost | User-entered economic product cost per order, excluding indirect tax; confirm the accounting treatment for your records. | currency units/order, ex indirect tax | 0 to 10000000 | Required | 50 |
| recoverableProductRate | Share of product cost expected to be recovered. | proportion of returned product cost recovered | 0 to 1 | Required | 0.75 |
| refundAllowanceRate | Share of orders expected to be returned or refunded. | proportion of orders expected to be returned or refunded | 0 to 0.99 | Required | 0.05 |
| reverseLogisticsCost | User-entered economic shipping and handling cost for one return, excluding indirect tax. | currency units/return, ex indirect tax | 0 to 10000000 | Required | 12 |
| shippingCost | User-entered economic fulfilment cost per order, excluding indirect tax. | currency units/order, ex indirect tax | 0 to 10000000 | Required | 10 |
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 โ full expected order cost stack
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
Related reading
Guides to interpret the decision and its assumptions.
- Ecommerce Profitability: A Per-Order Decision Map
Build contribution per order, then test fees, shipping, returns, acquisition, fulfilment and product mix one decision at a time.
Read guide - Free Shipping, Returns and CAC: Stress-Test the Same Order
Put shipping support, expected returns and acquisition cost on one order-contribution basis before choosing an offer.
Read guide - Contribution per Order After Ecommerce Fees
Reconcile product, fulfilment, platform, payment, returns and acquisition costs without double counting the fee stack.
Read guide - Compare Marketplace and Payment Fees
Translate your actual provider contracts and statements into percentage, fixed, recurring, refund and fulfilment components.
Read guide - 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 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.