03 — Growth Lab

Channel Margin ComparisonWhat does this channel really earn?

Enter eight simple inputs per channel. Fields start empty; 'Load a hypothetical example' fills in labelled sample numbers. The result is contribution margin, not net profit.

From your choice on the home page: We sell, but the margin is thin.

The tool

Currency for all inputs

Switching toman↔rial multiplies or divides every value by 10. No FX rate is applied.

For simplicity, one order = one unit.

Direct

Marketplace

Distribution partner

Result

No-JavaScript version: all text, forms and links remain available.

The calculation runs in your browser. Nothing is sent to the server unless you choose to save.

How it's calculated

Net price = price × (1 − discount ÷ 100). Commission = net price × commission % ÷ 100. Contribution per order = net price − cost of goods − commission − fixed fee − packaging & shipping − allocated acquisition cost. Contribution % = contribution ÷ net price × 100 (only when net price is positive). Monthly contribution = contribution per order × monthly orders. The recommended channel is chosen only by the metric you select.

net = price × (1 − discount%)  |  commission = net × commission%  |  contribution = net − cogs − commission − fixed_fee − shipping − acquisition  |  monthly = contribution × orders

Assumptions

One order = one unit. All inputs in a comparison share one currency. Toman↔rial conversion is only ×10 or ÷10; no FX rate is applied. You enter platform commission rates yourself; the tool has no defaults.

Limitations

Taxes, fixed costs, returns, warehousing, financing and other costs are not deducted, so the result is not net profit. Channel capacity, risk and customer quality are outside the calculation and may change the decision. Negative margins are valid and shown.

A worked example

Price 100, discount 10%, commission 10%, cost of goods 50, fixed fee 1, shipping 5 and acquisition 10 → net price 90, commission 9, contribution per order 15 (16.7%). With 100 orders a month, monthly contribution is 1,500.

Frequently asked questions

Why don't you call the result 'profit'?

Because only variable per-order costs are deducted. Net profit comes after fixed costs, taxes and returns, which are not entered here.

How do I allocate acquisition cost per order?

Simplest way: that channel's total advertising and acquisition spend in a month ÷ its orders in the same month.

If the marketplace margin is negative, should I shut it down?

Not necessarily. Negative means each order loses money under these assumptions, but the channel may feed repeat customers or brand awareness. Re-check the assumptions (commission, discount, shipping) first, then weigh capacity and the channel's role.

Who is the USD option for?

For businesses that price in USD. No conversion between USD and toman is performed because the tool holds no reliable rate.