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Primary formula: minimum order value = (fixed costs + target contribution) รท (1 โˆ’ percentage costs)

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

Owners setting an order floor after delivery, handling and percentage costs.

Outputs

Fixed cost stack, minimum order value and contribution at the threshold.

Start here

Separate fixed order costs from percentage costs, then set the contribution required per order.

Use a different tool when: Do not use this to compare segment pricing; use Customer Segment Pricing Planner for that decision. Use this tool to set a profitable order floor.

Price & margin

Minimum Order Value: fixed cost stack

Fixed cost stack, minimum order value and contribution at the threshold.

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

Minimum Order Value

Solve an order floor after fixed and percentage costs.

Your numbers stay in this browser

currency units

Handling cost per order.

currency units

Delivery funded by the order.

currency units

Fixed transaction charge.

%

Percentage transaction fee.

%

Product cost as a share of order value.

currency units

Contribution required per order.

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.
Minimum order value
67.24
Fixed Cost Stack Ex Tax
20.30
Percentage Costs Ex Tax
31.94
Contribution At Minimum Ex Tax
15.00

Scenario comparison

Each row names the assumption axis changed from the baseline.

ScenarioResultDifference
Current scenario67.24Baseline
Lower Target contribution65.81-1.43
Higher Target contribution68.671.43

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.

Minimum order value

Minimum Order Value Ex Tax(fixed cost stack + target contribution) รท (1 โˆ’ percentage cost rate)67.24 , ex tax
Result67.24

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

Minimum Order Value Planner formulas โ†’
Inputs used by these formula steps
Minimum Order Value Ex TaxFixed Order Cost Ex Tax
8
Minimum Order Value Ex TaxDelivery Cost Ex Tax
12
Minimum Order Value Ex TaxPayment Fee Fixed Ex Tax
0.3
Minimum Order Value Ex TaxPayment Fee Rate
0.03
Minimum Order Value Ex TaxVariable Cost Rate
0.45
Minimum Order Value Ex TaxTarget Contribution Ex Tax
15

Fixed Cost Stack Ex Tax

Fixed Cost Stack Ex Taxfixed order cost + delivery cost + fixed payment fee20.30 , ex tax
Result20.30

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

Minimum Order Value Planner formulas โ†’
Inputs used by these formula steps
Fixed Cost Stack Ex TaxFixed Order Cost Ex Tax
8
Fixed Cost Stack Ex TaxDelivery Cost Ex Tax
12
Fixed Cost Stack Ex TaxPayment Fee Fixed Ex Tax
0.3
Fixed Cost Stack Ex TaxPayment Fee Rate
0.03
Fixed Cost Stack Ex TaxVariable Cost Rate
0.45
Fixed Cost Stack Ex TaxTarget Contribution Ex Tax
15

Percentage Costs Ex Tax

Percentage Costs Ex Taxminimum order value ร— total percentage cost rate31.94 , ex tax
Result31.94

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

Minimum Order Value Planner formulas โ†’
Inputs used by these formula steps
Percentage Costs Ex TaxFixed Order Cost Ex Tax
8
Percentage Costs Ex TaxDelivery Cost Ex Tax
12
Percentage Costs Ex TaxPayment Fee Fixed Ex Tax
0.3
Percentage Costs Ex TaxPayment Fee Rate
0.03
Percentage Costs Ex TaxVariable Cost Rate
0.45
Percentage Costs Ex TaxTarget Contribution Ex Tax
15

Contribution At Minimum Ex Tax

Contribution At Minimum Ex Taxminimum order value โˆ’ fixed stack โˆ’ percentage costs15 , ex tax
Result15.00

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

Minimum Order Value Planner formulas โ†’
Inputs used by these formula steps
Contribution At Minimum Ex TaxFixed Order Cost Ex Tax
8
Contribution At Minimum Ex TaxDelivery Cost Ex Tax
12
Contribution At Minimum Ex TaxPayment Fee Fixed Ex Tax
0.3
Contribution At Minimum Ex TaxPayment Fee Rate
0.03
Contribution At Minimum Ex TaxVariable Cost Rate
0.45
Contribution At Minimum Ex TaxTarget Contribution Ex Tax
15

Inputs used

Fixed order cost
8
Delivery cost
12
Fixed payment fee
0.3
Payment fee rate
0.03
Variable product cost rate
0.45
Target contribution
15
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/minimum-order-value-profit/?sv=1&deliveryCostExTax=12&fixedOrderCostExTax=8&paymentFeeFixedExTax=0.3&paymentFeeRate=0.025&targetContributionExTax=15&variableCostRate=0.45

ParameterMeaningUnitAllowed valuesPresenceDefault
deliveryCostExTaxDelivery funded by the order.currency units/order, ex tax0 to 10000000Required12
fixedOrderCostExTaxHandling cost per order.currency units/order, ex tax0 to 10000000Required8
paymentFeeFixedExTaxFixed transaction charge.currency units/order, ex tax0 to 10000000Required0.3
paymentFeeRatePercentage transaction fee.proportion of order value charged as payment fee0 to 0.99Required0.025
targetContributionExTaxContribution required per order.currency units/order, ex tax0 to 10000000Required15
variableCostRateProduct cost as a share of order value.proportion of order value consumed by variable product cost0 to 0.99Required0.45

Minimum Order Value: fixed cost stack

The order threshold covers the fixed order-cost stack, percentage costs and required contribution entered.

Formula summary

Primary formula
minimum order value = (fixed costs + target contribution) รท (1 โˆ’ percentage costs)

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

Apply the threshold consistently or define an explicit fee for orders below it.

Stress-test the decision

Retest delivery and payment costs for the highest-cost order profile.

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 order threshold covers the fixed order-cost stack, percentage costs and required contribution entered.

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

Guides to interpret the decision and its assumptions.

Frequently asked questions

How do I set a profitable order floor?

Apply the threshold consistently or define an explicit fee for orders below it.

Which planning assumptions should I stress-test?

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