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D2CBooster

Free calculator · Updated 1 Nov 2026

Contribution margin calculator

Gross margin ignores most of what an order costs. This calculator layers the costs in the order you control them, so you can see whether one order made money before you decide how much to spend on ads.

Your numbers

The starting values are an illustrative example from our guide, not benchmarks. Replace every one with your own.

GST is collected for the government, so it is taken out of revenue.

Landed cost of the item.

Charged on the amount the customer pays.

Enter 0 if you can claim it back as input credit.

Probability of a failed delivery × cost of one.

Total ad spend ÷ orders for the same period.

Result

CM3: after ad spend

₹117

11.7% of net revenue

Net revenue (excluding GST)
₹1,000
CM1: after product cost70% of net revenue
₹700
CM2: after packaging, shipping, fees and returns51.7% of net revenue
₹517

Calculated in your browser. Nothing you enter is sent to us.

How it is calculated

  • Net revenue = selling price ÷ (1 + GST rate)
  • CM1 = net revenue − product cost
  • CM2 = CM1 − packaging − shipping − payment fee (with GST on the fee) − expected RTO or return cost
  • CM3 = CM2 − ad spend per order

Reading the result

  • Use revenue without GST. GST is collected for the government, so it is not yours.
  • Treat RTO as a probability times the cost of a failed delivery, not as a share of revenue.
  • Use actual ad spend divided by actual orders, not the return your ad platform reports.

Go further

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