Act on the result
Use shipping contribution and the required shipping charge per order to set the charge, subsidy or free-shipping limit.
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
Ecommerce operators comparing shipping services, subsidies and order economics.
Outputs
Weighted shipping cost, contribution after shipping and shipping share of revenue.
Start here
Use actual order shares and shipping costs from one consistent planning period.
Use a different tool when: Do not use this to test order contribution after the full fee stack; use Ecommerce Order Profitability Planner for that decision. Use this tool to choose a shipping charge after weighted delivery costs.
Commerce & operations
Shipping Profitability: weighted shipping cost
Weighted shipping cost, contribution after shipping and shipping share of revenue.
Amounts use the same currency as your inputs. No currency conversion is performed.
Shipping Profitability
Choose charged, subsidised or free shipping after weighted delivery costs.
Your numbers stay in this browser
Orders in the period.
Customer shipping charge per order. Enter the amount on one consistent ex-tax market-currency basis.
Per-order packaging and handling. Enter the amount on one consistent ex-tax market-currency basis.
Expected returned order share.
Seller-funded return shipping per return. Enter the amount on one consistent ex-tax market-currency basis.
Local share; both zones must total 100%.
Carrier cost per local order. Enter the amount on one consistent ex-tax market-currency basis.
Remote share; both zones must total 100%.
Carrier cost per remote order. Enter the amount on one consistent ex-tax market-currency basis.
Decision result
Each output is bound to its registered ecommerce engine formula.
- Weighted Carrier Cost Per Order
- 8.50
- Shipping contribution
- -3,300.00
- Recovery Rate
- 70.8%
- Loss Per Order
- 3.30
- Required Shipping Charge Per Order
- 11.30
Scenario comparison
Each row names the assumption axis changed from the baseline.
ScenarioResultDifference
Current scenario-3,300.00Baseline
Lower Shipping charged-3,700.00-400.00
Higher Shipping charged-2,900.00400.00
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.
Weighted Carrier Cost Per Order
Weighted Carrier Cost Per Order
sum(zone share × carrier cost)8.50Result8.50
Reports money for the entered planning period using the declared ex-tax cost and revenue basis. The engine retains full precision; presentation rounding does not feed calculation.
Shipping Profitability Planner formulas →Inputs used by these formula steps
- Weighted Carrier Cost Per OrderOrders
- 1,000
- Weighted Carrier Cost Per OrderShipping Charged Per Order
- 8
- Weighted Carrier Cost Per OrderPackaging And Handling Per Order
- 2
- Weighted Carrier Cost Per OrderReturn Rate
- 0.08
- Weighted Carrier Cost Per OrderReturn Shipping Cost Per Return
- 10
- Weighted Carrier Cost Per OrderLocal Zone Share
- 0.7
- Weighted Carrier Cost Per OrderLocal Carrier Cost
- 7
- Weighted Carrier Cost Per OrderRemote Zone Share
- 0.3
- Weighted Carrier Cost Per OrderRemote Carrier Cost
- 12
Shipping contribution
Shipping Contribution
orders × (charge − required shipping charge)-3,300.00Result-3,300.00
Reports money for the entered planning period using the declared ex-tax cost and revenue basis. The engine retains full precision; presentation rounding does not feed calculation.
Shipping Profitability Planner formulas →Inputs used by these formula steps
- Shipping ContributionOrders
- 1,000
- Shipping ContributionShipping Charged Per Order
- 8
- Shipping ContributionPackaging And Handling Per Order
- 2
- Shipping ContributionReturn Rate
- 0.08
- Shipping ContributionReturn Shipping Cost Per Return
- 10
- Shipping ContributionLocal Zone Share
- 0.7
- Shipping ContributionLocal Carrier Cost
- 7
- Shipping ContributionRemote Zone Share
- 0.3
- Shipping ContributionRemote Carrier Cost
- 12
Recovery Rate
Recovery Rate
shipping revenue / shipping cost0.71 percentResult70.8%
Reports percent for the entered planning period using the declared ex-tax cost and revenue basis. The engine retains full precision; presentation rounding does not feed calculation.
Shipping Profitability Planner formulas →Inputs used by these formula steps
- Recovery RateOrders
- 1,000
- Recovery RateShipping Charged Per Order
- 8
- Recovery RatePackaging And Handling Per Order
- 2
- Recovery RateReturn Rate
- 0.08
- Recovery RateReturn Shipping Cost Per Return
- 10
- Recovery RateLocal Zone Share
- 0.7
- Recovery RateLocal Carrier Cost
- 7
- Recovery RateRemote Zone Share
- 0.3
- Recovery RateRemote Carrier Cost
- 12
Loss Per Order
Loss Per Order
max(0, required charge − actual charge)3.30Result3.30
Reports money for the entered planning period using the declared ex-tax cost and revenue basis. The engine retains full precision; presentation rounding does not feed calculation.
Shipping Profitability Planner formulas →Inputs used by these formula steps
- Loss Per OrderOrders
- 1,000
- Loss Per OrderShipping Charged Per Order
- 8
- Loss Per OrderPackaging And Handling Per Order
- 2
- Loss Per OrderReturn Rate
- 0.08
- Loss Per OrderReturn Shipping Cost Per Return
- 10
- Loss Per OrderLocal Zone Share
- 0.7
- Loss Per OrderLocal Carrier Cost
- 7
- Loss Per OrderRemote Zone Share
- 0.3
- Loss Per OrderRemote Carrier Cost
- 12
Required Shipping Charge Per Order
Required Shipping Charge Per Order
carrier + handling + expected return shipping11.30Result11.30
Reports money for the entered planning period using the declared ex-tax cost and revenue basis. The engine retains full precision; presentation rounding does not feed calculation.
Shipping Profitability Planner formulas →Inputs used by these formula steps
- Required Shipping Charge Per OrderOrders
- 1,000
- Required Shipping Charge Per OrderShipping Charged Per Order
- 8
- Required Shipping Charge Per OrderPackaging And Handling Per Order
- 2
- Required Shipping Charge Per OrderReturn Rate
- 0.08
- Required Shipping Charge Per OrderReturn Shipping Cost Per Return
- 10
- Required Shipping Charge Per OrderLocal Zone Share
- 0.7
- Required Shipping Charge Per OrderLocal Carrier Cost
- 7
- Required Shipping Charge Per OrderRemote Zone Share
- 0.3
- Required Shipping Charge Per OrderRemote Carrier Cost
- 12
Inputs used
- Orders
- 1,000
- Shipping charged
- 8.00
- Packaging and handling
- 2.00
- Return rate
- 8%
- Return shipping
- 10.00
- Local zone share
- 70%
- Local carrier cost
- 7.00
- Remote zone share
- 30%
- Remote carrier cost
- 12.00
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 |
|---|---|---|---|---|---|
| localCarrierCost | Carrier cost per local order. Enter the amount on one consistent ex-tax market-currency basis. | currency units/planning period, ex tax | 0 to 100000000 | Required | 7 |
| localZoneShare | Local share; both zones must total 100%. | proportion of orders shipped to local zone | 0 to 1 | Required | 0.7 |
| orders | Orders in the period. | whole orders/planning period | 0 to 100000000 | Required | 1000 |
| packagingAndHandlingPerOrder | Per-order packaging and handling. Enter the amount on one consistent ex-tax market-currency basis. | currency units/order, ex tax | 0 to 100000000 | Required | 2 |
| remoteCarrierCost | Carrier cost per remote order. Enter the amount on one consistent ex-tax market-currency basis. | currency units/planning period, ex tax | 0 to 100000000 | Required | 12 |
| remoteZoneShare | Remote share; both zones must total 100%. | proportion of orders shipped to remote zone | 0 to 1 | Required | 0.3 |
| returnRate | Expected returned order share. | proportion of orders returned | 0 to 1 | Required | 0.08 |
| returnShippingCostPerReturn | Seller-funded return shipping per return. Enter the amount on one consistent ex-tax market-currency basis. | currency units/event, ex tax | 0 to 100000000 | Required | 10 |
| shippingChargedPerOrder | Customer shipping charge per order. Enter the amount on one consistent ex-tax market-currency basis. | currency units/order, ex tax | 0 to 100000000 | Required | 8 |
Shipping Profitability: weighted shipping cost
Shipping contribution shows whether the customer charge covers weighted carrier, handling and expected return-shipping costs.
Formula summary
- Primary formula
- shipping contribution = orders × (charge − weighted carrier cost − handling − expected return shipping)
Data used here
- The estimate uses your inputs and the general business formula documented in the methodology.
Decision checks
Stress-test the decision
Retest remote zone share as a percentage of orders and remote carrier cost in currency units per order, ex tax.
When this estimate can be misleading
- All provider fees, exchange rates, returns, demand and operating rates are user-entered scenarios.
- Use one consistent ex-tax currency and planning period across compared inputs.
- This is educational business decision support, not accounting, tax, legal or financial advice.
- Shipping contribution shows whether the customer charge covers weighted carrier, handling and expected return-shipping costs.
Educational estimate, not advice. See all assumptions & limitations →
Related reading
Guides to interpret the decision and its assumptions.
- Last-Mile Delivery: Route, Time and Failure
Connect route cost, stop density, time and failed delivery on one completed-delivery basis.
Read guide - Price per Delivery vs Price per Route
Compare delivery and route pricing using aligned stop density, distance, time and failure assumptions.
Read guide
Frequently asked questions
How do I choose a shipping charge after weighted delivery costs?
Use shipping contribution and the required shipping charge per order to set the charge, subsidy or free-shipping limit.
Which planning assumptions should I stress-test?
Compare a plausible alternative scenario and verify the decision-critical assumption that changes the plan most.