SheetCommand · E-commerce calculations and CSV

Calculate e-commerce contribution margin in Excel

Assess a product's price without confusing margin with markup.

'What is my profit percentage?' depends on which costs you include and which denominator you use. Amount left after product cost differs from contribution after all listed variable costs. This worksheet makes the distinction explicit; it does not replace accounting or tax advice.

Find per-product contribution

Use A for SKU, B for selling price, C for product cost, D for commission, E for shipping, F for allocated advertising, and G for contribution. With B2=500, C2=250, D2=50, E2=30, and F2=20, G2 is 150.

Document how order-level shipping and ads are allocated to products. If one order contains multiple items, charging full order shipping to every item double-counts the cost.

SaleProductCommissionShippingAdsContribution
500250503020150
Example formula=B2-C2-D2-E2-F2

Margin is not markup

Contribution margin is G2/B2, or 150/500=30% here. The defined total variable cost is 350; dividing the same contribution by that cost gives about 42.86% on cost. These percentages have different denominators and are not interchangeable.

Use a consistent tax-inclusive or tax-exclusive basis. If returns, packaging, staff, rent, and taxes are omitted, G2 is not final net profit. Handle a zero selling price before dividing.

Example formula=G2/B2

Three checks before a decision

Keep channel-specific commission and shipping assumptions in separate rows. A fast-selling product can have low contribution, so revenue alone is not enough for a pricing or campaign decision.

SheetCommand can sort and total supported files, but it does not build this multicolumn cost allocation automatically. Verify the formula on a sample row and compare it with actual accounts.

Frequently asked questions

Are margin and markup the same?

No. Margin divides by selling price; markup divides by the defined cost base.

Is contribution margin net profit?

No. Omitted fixed costs, returns, and taxes can change final profit.

Sources and further reading

SheetCommand

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