Contribution margin calculator
See what is left before fixed costs and advertising.
Contribution margin = (revenue − variable costs) ÷ revenue
A ₹1,000 order with ₹550 of product, shipping, payment and packaging costs has a 45% contribution margin.
Calculated result—
How to read the result
- Variable costs change with each order: product cost, shipping, payment gateway fees, packaging, returns.
- This margin sets your break-even ROAS: 1 ÷ margin.
- A discount comes straight out of contribution, which is why bundles are often cheaper than price cuts.
The result is only as useful as the cost definition behind it. Your numbers tell you what you can afford; your rivals' ads tell you what the market is testing. See what Indian D2C brands are running.
Questions people ask
What is contribution margin?
For this calculator, it is contribution profit divided by revenue using the variable costs you enter.
Why define the costs carefully?
Different teams include different variable costs, so the definition needs to stay consistent across comparisons.