The method
How it is worked out
Contribution = price × (1 − returns) − direct cost − fulfilment − fees − marketing per order; break-even = fixed ÷ contribution
- contribution margin
- What each sale leaves to cover fixed costs and profit
Unit Economics Calculator
Work out contribution margin per unit and how many units cover fixed costs. The result updates as you type so you can compare scenarios quickly.
Keep in mind
What it leaves out
- Repeat purchaseMarketing per first order overstates cost if customers reorder.
- DiscountsUse the average realised price, not list.
Use the calculator to compare scenarios rather than as a guaranteed forecast.
About the Unit Economics Calculator
Work out what each sale actually contributes after direct costs, fulfilment, fees, returns and the marketing to win it, and the volume that covers fixed costs.
How it works and an example to tryShow less
How to use the result
Net price is price less returns. Contribution is net price less direct cost, fulfilment, fees and marketing per order. Break-even units divide fixed costs by contribution.
Example to try
A £49 product with £18 cost, £6 shipping, 4% fees, 5% returns and £9 marketing contributes £11.59 a unit, a 24% margin. £20,000 of fixed costs needs 1,726 units a month.
Put it to work
Try it on a real situation
Load an example
What moves the result most
Worked out from your figures above. Tap a row to try it.
Who uses it, and when
E-commerce founders, product managers and anyone pricing a physical or digital product.
Mistakes worth avoiding
- Leaving marketing out because it is a fixed budget; it scales with orders.
- Using list price when discounts are routine.
- Growing volume when the unit contribution is negative.
Questions
What does the Unit Economics Calculator do?
Work out contribution margin per unit and how many units cover fixed costs.
How should I use the result?
Net price is price less returns. Contribution is net price less direct cost, fulfilment, fees and marketing per order. Break-even units divide fixed costs by contribution.
Does TechBullion store the information I enter?
The core calculation or transformation runs in your browser. Normal website security and analytics may still record page-level events, but the tool does not need to create a public record from your inputs.
What mistakes do people make with an unit economics calculator?
Leaving marketing out because it is a fixed budget; it scales with orders. Using list price when discounts are routine. Growing volume when the unit contribution is negative.
Is the result guaranteed?
No. Use the result as a practical check or planning aid and verify important decisions with the relevant primary source, provider or professional advice.
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Results are estimates based on the figures entered, for general information only, and not financial, investment, tax or legal advice. See our terms of use.