Free Contribution Margin Calculator for Ecommerce
Contribution margin is what each order leaves after costs that scale with the order. It is more useful than gross margin for deciding whether an ecommerce offer can pay for fixed costs and acquisition.
Contribution margin is the amount left after costs that scale with each order. Gross margin alone can overstate the money available to pay fixed costs when fulfillment, platform fees and acquisition are material.
How this free tool works
Calculate contribution margin per order, margin percentage, profit after fixed costs and break-even orders after COGS, fulfillment, fees and ad spend. The result is designed to be transparent: you can see the inputs, the formula and the assumptions instead of receiving a black-box score.
Contribution per order = price − COGS − fulfillment − payment/platform fee − ad spend. Contribution margin % = contribution per order ÷ price × 100.
Best for
- DTC operators diagnosing where margin disappears
- Shopify sellers comparing price, fulfillment and acquisition scenarios
- Founders who need break-even orders instead of a gross-margin headline
Frequently asked questions
What is contribution margin in ecommerce?+
It is the amount left from an order after subtracting variable costs such as product cost, fulfillment, payment fees and acquisition cost. The remainder contributes to fixed costs and profit.
Is contribution margin the same as gross margin?+
No. Gross margin commonly subtracts product cost. Contribution margin can also subtract order-level fulfillment, payment, platform and advertising costs, so it is usually stricter.
Why include ad spend per order?+
Including acquisition cost shows the contribution left after buying the order. Keep the input definition consistent with the CAC or blended acquisition view you are using.
References and methodology
We use primary documentation where available and treat calculators as planning aids, not guarantees. Check the linked source when a platform changes its rules.
- Shopify: What is a good profit margin?
High-authority explanation of gross, operating and net margin.
- Shopify: Profit margin calculator
First-party pricing and margin context; fee assumptions vary by store and market.
Turn this answer into a repeatable growth workflow.
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