Unit Economics calculator

How to calculate it

Contribution per order = selling price − product cost − fulfilment − fees − acquisition cost. Contribution margin = contribution ÷ selling price × 100.

Worked example

At a $75 sale price with $28 product cost, $8 fulfilment, $2 fees and $15 acquisition cost, contribution is $22 per order.

Results are estimates. Check your inputs and account for any costs not included before making financial decisions.

Contribution is not take-home profit

Contribution per order is the amount left after the variable costs listed here. It must still pay fixed business overhead. A positive contribution can coexist with an overall loss if there are too few orders to cover rent, software and salaries.

Use acquisition cost consistently

For a new-customer campaign, divide campaign spend by new customers acquired and enter that amount. For an average-order analysis, use the acquisition expense allocated to each order. Do not apply a lifetime acquisition cost to every repeat purchase unless that matches your chosen model.

A worked order

Revenue of 50, product cost of 18, fulfilment of 7, fees of 2 and acquisition cost of 8 leave 15 per order, or a 30% contribution margin. At 100 identical orders, that is 1,500 toward fixed costs. Refunds, returns and damaged stock need their own allowance in your inputs.

Planning estimate only. Check all costs, tax treatment and your actual circumstances. Calculation and rounding notes.