Product margin calculator
Estimate contribution after VAT, product cost, packaging, shipping, and payment fees.
Try a worked example
Try a worked example
Estimate contribution after VAT, product cost, packaging, shipping, and payment fees.
Check the units and options, then use the tool’s calculation button. The example is fictitious; replace its values for your own calculation.
Illustration only. Supply the applicable rates and assumptions yourself; this is not financial, tax or legal advice.
Example input
- Selling price (VAT included)
- 59.90
- VAT rate (%)
- 20
- Units in this order
- 1
- Product cost per unit (before VAT)
- 20
- Packaging per order
- 1
- Shipping cost per order
- 5
- Payment fee (%) of selling price
- 1.5
- Currency
- EUR €
Expected output
Sales before VAT: €49.92 Estimated variable costs: €26.90 Contribution after entered costs: €23.02 Contribution rate: 46.11 %
Calculates sales before VAT, then subtracts product cost per unit, packaging and shipping per order, and payment fees on the VAT-inclusive selling price.
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Method and limits
The result depends on the values entered and the method shown. Check the assumptions, rates, or rules that apply to your situation before using it. Illustrative result only. Verify the rules and assumptions that apply to your work.
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Quick answer
Calculates sales before VAT, then subtracts product cost per unit, packaging and shipping per order, and payment fees on the VAT-inclusive selling price.
The page code is downloaded when you open it; values are handled in your browser.
Limits of the result
The result depends on the values entered and the method shown. Check the assumptions, rates, or rules that apply to your situation before using it. Illustrative result only. Verify the rules and assumptions that apply to your work.
Frequently asked questions
What does the calculation include?
Net sales = VAT-inclusive price ÷ (1 + entered VAT rate) × quantity. The calculator subtracts product cost per unit × quantity, packaging per order, shipping per order, and the payment percentage of the VAT-inclusive sales price. Contribution rate = contribution ÷ net sales. With the prefilled example, net sales are 49.92, costs are 26.90, contribution is 23.02, and contribution rate is 46.11%. It excludes fixed payment fees and other costs such as advertising or labour; this is not full accounting profit.
Which values should I enter?
Estimate contribution after VAT, product cost, packaging, shipping, and payment fees. Use consistent amounts, units, and time periods.
Is the result definitive?
No. Check the assumptions and rules that apply to your situation; this is an illustrative calculation, not professional advice.
Sources and references
These references describe the cited context and rules; some apply only in the jurisdiction named in their title. They do not validate this illustrative calculation.