Measure gross margin, net margin, discounts, and rebates. Test target prices, channel costs, and commissions instantly. Make stronger sales decisions using accurate channel profitability insights.
Enter channel pricing, discounts, costs, and target margin assumptions. Results appear above this form after submission.
This chart compares revenue, major cost blocks, and final profit.
| Scenario | Sell Price | Units | COGS/Unit | Channel Discount | Rebate | Commission | Net Margin |
|---|---|---|---|---|---|---|---|
| Distributor Standard | $120.00 | 500 | $62.00 | 12% | 3% | 4% | 14.80% |
| Retail Push Program | $135.00 | 320 | $70.00 | 10% | 5% | 6% | 11.35% |
| Reseller Renewal | $98.00 | 900 | $48.00 | 8% | 2% | 3% | 17.10% |
Gross Revenue = Selling Price × Units
Net Revenue = Gross Revenue − Channel Discount − Promo Discount − Rebate − Returns Reserve
Gross Profit = Net Revenue − COGS
Contribution = Net Revenue − Variable Costs
Net Profit = Net Revenue − Total Variable Costs − Fixed Channel Cost
Gross Margin % = (Gross Profit ÷ Net Revenue) × 100
Contribution Margin % = (Contribution ÷ Net Revenue) × 100
Net Margin % = (Net Profit ÷ Net Revenue) × 100
Markup % = (Gross Profit ÷ COGS) × 100
Break-Even Units = Fixed Channel Cost ÷ Unit Contribution
Target Margin Price estimates the selling price required to hit the chosen target net margin after channel deductions and operating costs.
Enter your selling price and expected units. Add direct product cost, channel discounts, rebates, commissions, freight, and any marketing support.
Include returns reserve, payment fees, tax pass-through, and fixed channel costs for a more realistic profitability view.
Set a target net margin to estimate the selling price needed for your profitability goal. Click the calculate button to view results.
Review the summary cards, detailed results table, and graph. Export the output as CSV or PDF for reporting or review.
Channel margin shows how much profit remains after discounts, rebates, channel fees, product cost, and operating costs are deducted from revenue.
Gross margin measures product profitability before channel operating costs. Net margin includes commissions, logistics, fees, and fixed support costs.
Yes. Rebates reduce realized revenue and should be modeled as a revenue reduction when estimating true channel profitability.
Contribution margin is revenue left after variable costs. It helps estimate break-even volume and shows how much each sale supports fixed costs.
Net profit becomes negative when deductions, variable costs, and fixed costs exceed net revenue. This often signals weak pricing or high support expense.
It is the estimated selling price needed to achieve your selected net margin after accounting for discounts, returns, and operating costs.
Yes. The inputs are flexible enough for distributors, retailers, resellers, marketplaces, and partner-led selling models.
Exports make it easier to share assumptions, save pricing scenarios, compare margin plans, and support internal reviews or partner negotiations.
Important Note: All the Calculators listed in this site are for educational purpose only and we do not guarentee the accuracy of results. Please do consult with other sources as well.