Act on the result
Use SKU A contribution, SKU B contribution and their ranks to prioritise assortment, stock or promotion capacity.
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
Merchants ranking SKUs by retained contribution after returns and variable cost.
Outputs
Contribution per SKU, contribution margin and contribution ranking.
Start here
Use comparable revenue, volume and return assumptions for each SKU.
Use a different tool when: Do not use this to compare contribution when the volume mix changes across products; use Product Mix Profit Planner for that decision. Use this tool to rank SKUs by retained contribution after returns.
Commerce & operations
SKU Contribution Ranking: contribution per sku
Contribution per SKU, contribution margin and contribution ranking.
Amounts use the same currency as your inputs. No currency conversion is performed.
SKU Contribution Ranking
Rank two SKUs by retained contribution after variable cost and returns, not revenue alone.
Your numbers stay in this browser
SKU A selling price. Enter the amount on one consistent ex-tax market-currency basis.
Include fulfilment, fees and avoidable unit costs. Enter the amount on one consistent ex-tax market-currency basis.
SKU A units sold.
Expected returned share.
SKU B selling price. Enter the amount on one consistent ex-tax market-currency basis.
Include fulfilment, fees and avoidable unit costs. Enter the amount on one consistent ex-tax market-currency basis.
SKU B units sold.
Expected returned share.
Decision result
Each output is bound to its registered ecommerce engine formula.
- SKU A contribution
- 22,500.00
- Sku BContribution Ex Tax
- 26,400.00
- Sku AContribution Per Unit Ex Tax
- 45.00
- Sku BContribution Per Unit Ex Tax
- 33.00
- Sku ARank
- 2
Scenario comparison
Each row names the assumption axis changed from the baseline.
ScenarioResultDifference
Current scenario22,500.00Baseline
Lower SKU A units21,375.00-1,125.00
Higher SKU A units23,625.001,125.00
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.
SKU A contribution
Sku AContribution Ex Tax
A units × A retained unit contribution22,500.00Result22,500.00
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.
SKU Contribution Ranking Planner formulas →Inputs used by these formula steps
- Sku AContribution Ex TaxSku APrice Ex Tax
- 100
- Sku AContribution Ex TaxSku AUnit Cost Ex Tax
- 50
- Sku AContribution Ex TaxSku AUnits
- 500
- Sku AContribution Ex TaxSku AReturn Rate
- 0.05
- Sku AContribution Ex TaxSku BPrice Ex Tax
- 70
- Sku AContribution Ex TaxSku BUnit Cost Ex Tax
- 30
- Sku AContribution Ex TaxSku BUnits
- 800
- Sku AContribution Ex TaxSku BReturn Rate
- 0.1
Sku BContribution Ex Tax
Sku BContribution Ex Tax
B units × B retained unit contribution26,400.00Result26,400.00
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.
SKU Contribution Ranking Planner formulas →Inputs used by these formula steps
- Sku BContribution Ex TaxSku APrice Ex Tax
- 100
- Sku BContribution Ex TaxSku AUnit Cost Ex Tax
- 50
- Sku BContribution Ex TaxSku AUnits
- 500
- Sku BContribution Ex TaxSku AReturn Rate
- 0.05
- Sku BContribution Ex TaxSku BPrice Ex Tax
- 70
- Sku BContribution Ex TaxSku BUnit Cost Ex Tax
- 30
- Sku BContribution Ex TaxSku BUnits
- 800
- Sku BContribution Ex TaxSku BReturn Rate
- 0.1
Sku AContribution Per Unit Ex Tax
Sku AContribution Per Unit Ex Tax
A retained revenue − A variable cost45.00Result45.00
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.
SKU Contribution Ranking Planner formulas →Inputs used by these formula steps
- Sku AContribution Per Unit Ex TaxSku APrice Ex Tax
- 100
- Sku AContribution Per Unit Ex TaxSku AUnit Cost Ex Tax
- 50
- Sku AContribution Per Unit Ex TaxSku AUnits
- 500
- Sku AContribution Per Unit Ex TaxSku AReturn Rate
- 0.05
- Sku AContribution Per Unit Ex TaxSku BPrice Ex Tax
- 70
- Sku AContribution Per Unit Ex TaxSku BUnit Cost Ex Tax
- 30
- Sku AContribution Per Unit Ex TaxSku BUnits
- 800
- Sku AContribution Per Unit Ex TaxSku BReturn Rate
- 0.1
Sku BContribution Per Unit Ex Tax
Sku BContribution Per Unit Ex Tax
B retained revenue − B variable cost33.00Result33.00
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.
SKU Contribution Ranking Planner formulas →Inputs used by these formula steps
- Sku BContribution Per Unit Ex TaxSku APrice Ex Tax
- 100
- Sku BContribution Per Unit Ex TaxSku AUnit Cost Ex Tax
- 50
- Sku BContribution Per Unit Ex TaxSku AUnits
- 500
- Sku BContribution Per Unit Ex TaxSku AReturn Rate
- 0.05
- Sku BContribution Per Unit Ex TaxSku BPrice Ex Tax
- 70
- Sku BContribution Per Unit Ex TaxSku BUnit Cost Ex Tax
- 30
- Sku BContribution Per Unit Ex TaxSku BUnits
- 800
- Sku BContribution Per Unit Ex TaxSku BReturn Rate
- 0.1
Sku ARank
Sku ARank
descending rank by total contribution2 unitsResult2
Reports units 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.
SKU Contribution Ranking Planner formulas →Inputs used by these formula steps
- Sku ARankSku APrice Ex Tax
- 100
- Sku ARankSku AUnit Cost Ex Tax
- 50
- Sku ARankSku AUnits
- 500
- Sku ARankSku AReturn Rate
- 0.05
- Sku ARankSku BPrice Ex Tax
- 70
- Sku ARankSku BUnit Cost Ex Tax
- 30
- Sku ARankSku BUnits
- 800
- Sku ARankSku BReturn Rate
- 0.1
Inputs used
- SKU A price
- 100.00
- SKU A variable cost
- 50.00
- SKU A units
- 500
- SKU A return rate
- 5%
- SKU B price
- 70.00
- SKU B variable cost
- 30.00
- SKU B units
- 800
- SKU B return rate
- 10%
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 |
|---|---|---|---|---|---|
| skuAPriceExTax | SKU A selling price. Enter the amount on one consistent ex-tax market-currency basis. | currency units/planning period, ex tax | 0 to 100000000 | Required | 100 |
| skuAReturnRate | Expected returned share. | proportion of SKU A units returned | 0 to 1 | Required | 0.05 |
| skuAUnitCostExTax | Include fulfilment, fees and avoidable unit costs. Enter the amount on one consistent ex-tax market-currency basis. | currency units/planning period, ex tax | 0 to 100000000 | Required | 50 |
| skuAUnits | SKU A units sold. | whole events/planning period | 0 to 100000000 | Required | 500 |
| skuBPriceExTax | SKU B selling price. Enter the amount on one consistent ex-tax market-currency basis. | currency units/planning period, ex tax | 0 to 100000000 | Required | 70 |
| skuBReturnRate | Expected returned share. | proportion of SKU B units returned | 0 to 1 | Required | 0.1 |
| skuBUnitCostExTax | Include fulfilment, fees and avoidable unit costs. Enter the amount on one consistent ex-tax market-currency basis. | currency units/planning period, ex tax | 0 to 100000000 | Required | 30 |
| skuBUnits | SKU B units sold. | whole events/planning period | 0 to 100000000 | Required | 800 |
SKU Contribution Ranking: contribution per sku
SKU A contribution and the paired ranking compare retained contribution after variable cost and returns, rather than revenue alone.
Formula summary
- Primary formula
- SKU contribution = units × (revenue per unit × (1 − return rate) − variable cost per unit)
Data used here
- The estimate uses your inputs and the general business formula documented in the methodology.
Decision checks
Stress-test the decision
Retest SKU A return rate and SKU B return rate as percentages of units sold on the same planning-period basis.
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.
- SKU A contribution and the paired ranking compare retained contribution after variable cost and returns, rather than revenue alone.
Educational estimate, not advice. See all assumptions & limitations →
Related reading
Guides to interpret the decision and its assumptions.
- Retail Store Economics: Margin, Stock and Occupancy
Connect item contribution, markdown exposure, stock funding and occupancy cost without turning one ratio into a store forecast.
Read guide - How to Rank SKUs by Contribution, Not Revenue
Rank comparable SKUs by contribution per order or total contribution while keeping product-mix and discontinuation decisions separate.
Read guide
Frequently asked questions
How do I rank SKUs by retained contribution after returns?
Use SKU A contribution, SKU B contribution and their ranks to prioritise assortment, stock or promotion capacity.
Which planning assumptions should I stress-test?
Compare a plausible alternative scenario and verify the decision-critical assumption that changes the plan most.