Track revenue, cost, margin, and operating profit. Review contribution, markup, breakeven, and target profit easily. Spot pricing gaps before they weaken profit and growth.
| Scenario | Units | List Price | Discount % | Variable Cost | Packaging | Commission % | Fee % | Ship Rev / Unit | Ship Cost / Unit | Returns % | Fixed Costs | Target Profit |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Baseline | 1200 | $85.00 | 8 | $36.00 | $3.50 | 7 | 2.2 | $4.50 | $5.75 | 4 | $18,000 | $12,000 |
| Lean Cost | 1200 | $85.00 | 8 | $34.00 | $3.00 | 7 | 2.2 | $4.50 | $5.50 | 4 | $18,000 | $12,000 |
| Discount Push | 1400 | $85.00 | 12 | $36.00 | $3.50 | 7 | 2.2 | $4.50 | $5.75 | 5 | $18,000 | $12,000 |
Use the example values to test price sensitivity, contribution change, break-even movement, and how returns or fees reshape operating profit.
Effective Selling Price per Unit = List Price × (1 − Discount %)
Realized Product Revenue per Unit = Effective Selling Price × (1 − Returns %)
Effective Sales per Sold Unit = Realized Product Revenue per Unit + Shipping Revenue per Unit
Commission per Sold Unit = Realized Product Revenue per Unit × Commission %
Payment Fee per Sold Unit = Effective Sales per Sold Unit × Payment Fee %
Product Variable Cost per Sold Unit = (Variable Cost + Packaging Cost) × (1 − Returns %)
Total Variable Cost per Sold Unit = Product Variable Cost + Shipping Cost + Commission + Payment Fee
Unit Contribution = Effective Sales per Sold Unit − Total Variable Cost per Sold Unit
Net Sales = Effective Sales per Sold Unit × Units Sold
Gross Profit = Net Sales − Product Variable Cost Total − Shipping Cost Total
Contribution Margin = Net Sales − Total Variable Cost
Operating Profit = Contribution Margin − Fixed Costs
Break-Even Units = Fixed Costs ÷ Unit Contribution
Target Profit Units = (Fixed Costs + Target Profit) ÷ Unit Contribution
This model separates gross profit from contribution margin so you can see how commissions and payment fees affect final sales profitability.
It shows how price, costs, fees, returns, and fixed overhead affect gross profit, contribution margin, operating profit, break-even units, and margin of safety.
Gross margin excludes some selling-related variable expenses. Contribution margin includes variable selling costs like commissions and payment fees, making it more useful for break-even planning.
Returns reduce realized product revenue and reduce product-linked variable cost in the model. This helps show how post-sale reversals shrink true profitability.
A good operating margin depends on your industry, product mix, and channel structure. Compare your result with historical performance and direct competitors.
That means contribution per sold unit is zero or negative. The current price and cost structure cannot cover fixed costs at any volume.
Yes. Change the discount percentage and compare the operating profit, margin percentage, and break-even shift to test promotional strategies.
Separating them shows whether shipping is profitable, neutral, or subsidized. That is helpful when free-shipping campaigns change final margin.
Use target profit units when planning sales quotas, campaign goals, or pricing updates. It translates profit objectives into an actionable volume target.
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.