Contribution Margin by Channel

How it works

The calculator stacks every channel side by side, so the comparison is the point, not an afterthought.

1. Channel setup: Step 1: name and tag each channel column, up to 6 channels preloaded
2. Volume and revenue: Step 2: units sold, ASP, returns %, discount %, and the resulting net revenue
3. Variable costs: Step 3: COGS per unit, payment processing %, marketplace fee %, fulfillment $ per order, outbound shipping $ per order, and variable marketing $ per order, the true CAC for paid channels
4. Contribution margin: Step 4: CM$, CM%, and CM per unit for each channel, plus blended totals
5. Ranking and mix-shift: Channels sorted best to worst by CM%, with a scenario tool to test shifting volume between any two channels

Steps to use it

1. Open Calculator and rename the channel columns to match where you sell
2. Fill in the blue input cells: units, ASP, returns, discounts, COGS, fees, fulfillment, shipping, and variable marketing
3. Read each channel’s CM$, CM%, and CM per unit, plus blended totals
4. Check the ranking block to see channels sorted best to worst by CM%
5. Use the mix-shift scenario to model moving volume from one channel to another
6. Open Reference for integrity checks, definitions, and channel-fee benchmarks

CM% status tiers are built in: HEALTHY at 40% or above, OK between 20% and 40%, THIN between 0% and 20%, and LOSING below 0%, where every unit destroys value before overhead. Thresholds can be tuned to your category benchmarks.