Margain

E-Commerce Profit Margin Simulator

Simulate your unit economics: calculate real take-home margin per item after shipping, packaging, returns, and gateway fees.

Unit Economics Parameters

Per-Item Unit Economics

Enter pricing, landed manufacturing, fulfillment, payment fees, and return allowances.

$75
$22
$5
$8
2.9%
4%
Unit Cost Absorption Breakdown
Direct COGS + Outbound Shipping:$30.00
Gateway Fee (+ $0.30 fixed):$2.62
Return Loss Allowance:$1.04
Net Operational ProfitCalculated Live

Contribution Margin

57.9%($46.34 / order)

The actual share of order revenue remaining to cover fixed overhead, salaries, and customer acquisition.

Gross Margin

70.7%

Retail price vs COGS

Net Profit Per Unit

$46.34

Dollar contribution

Orders for $10k Net:216 orders

Number of orders needed per month to generate $10,000 in net contribution cash flow.

Mathematical & Operational Guide

How the Math & Economics Work

Understand the exact equations, managerial accounting rules, and unit economics governing these metrics in modern e-commerce.

Unit Contribution Margin Formula
Net Contribution = Price − COGS − Shipping − Gateway Fee − Returns

To calculate what your business actually retains from every order, deduct all variable fulfilment and processing costs from the gross checkout price.

Verified operational finance formulation
Worked Example: $75.00 Retail Order
Store Checkout Price
$75.00
Product Unit Cost (COGS)

Direct manufacturing/wholesale cost

−$22.00
Net Courier / Shipping Cost

Postage cost net of shipping charged

−$8.00
Payment Processing Fee

2.9% + $0.30 gateway fee

−$2.48
Expected Return Provision

Estimated return cost reserve

−$1.20
Order Net Contribution

Actual margin pool remaining for ad acquisition and profit

$41.32 (55.1%)
Scenario figures based on declared parameters

Top-Line Revenue Illusion vs. Real Cash Flow

A $100,000 revenue month with a 70% gross margin seems strong. But after deducting $15,000 shipping, $3,200 payment processing, and $40,000 ad spend, actual retained cash is $11,800. Margain surfaces the complete waterfall every morning.

Frequently Asked Questions

Margain Platform Automation

Track Your Store's True Contribution Waterfall

Layer product costs, payment fees, and ad spend onto sales in real time with Margain Financial Clarity.

Explore Financial Clarity

Related Guides & Playbooks

Deep-dive operational frameworks explaining the unit economics, cash cycles, and marketing attribution behind this calculator.

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