Unit Economics Calculator

Calculate full unit economics for my e-commerce business: - Average revenue per order: $[X] - Product COGS: $[X] - Shipping cost per order: $[X] - Packaging per order: $[X] - Payment processing: [X]% of revenue - Return rate: [X]% - Return shipping cost: $[X] per return - Customer acquisition cost (CAC): $[X] - Monthly fixed overhead: $[X] - Monthly order volume: [X] Produce: 1. Contribution margin per order (before and after returns) 2. Contribution margin percentage 3. Fully-loaded profit per order (including allocated overhead) 4. Break-even analysis (orders needed per month to cover fixed costs) 5. Sensitivity table: show how profit per order changes with ±10% shifts in AOV, COGS, return rate, and CAC 6. Rank the top 3 cost levers by impact — where should I focus to improve profitability? 7. What AOV increase would I need to achieve a 20% net margin?

**Per-Order Economics:** | Line Item | Amount | % of Revenue | |-----------|--------|-------------| | Revenue | $85.00 | 100.0% | | COGS | ($28.00) | 32.9% | | Shipping | ($7.50) | 8.8% | | Packaging | ($2.00) | 2.4% | | Processing (3%) | ($2.55) | 3.0% | | **Contribution Margin** | **$44.95** | **52.9%** | **Return-Adjusted Margin:** - 15% of orders are returned. Each return costs $6.00 in return shipping plus the lost contribution. - Blended return cost per order: 15% x ($44.95 + $6.00) = $7.64 - **Margin After Returns: $37.31/order (43.9%)** **Fully-Loaded Profit Per Order:** - Allocated overhead: $12,000 / 450 orders = $26.67/order - CAC: $52.00/order - **Fully-loaded profit: $37.31 - $26.67 - $52.00 = ($41.36)/order** Wait — this business is currently unprofitable on a fully-loaded basis. Let's separate first-order vs. repeat economics: - First order (with CAC): $37.31 - $26.67 - $52.00 = **($41.36) loss** - Repeat order (no CAC): $37.31 - $26.67 = **$10.64 profit** - You need ~4.9 repeat purchases per customer to recover CAC **Break-Even Analysis:** - Orders to cover overhead only: $12,000 / $37.31 = 322 orders/month ✅ (you do 450) - Orders to cover overhead + all CAC: $12,000 / ($37.31 - $52.00) = N/A (contribution after CAC is negative) - Break-even requires reducing CAC below $37.31 or increasing AOV **Sensitivity Table (impact on margin after returns per order):** | Variable | -10% | Current | +10% | Impact | |----------|-------|---------|------|--------| | AOV ($76.50 / $85 / $93.50) | $32.44 | $37.31 | $42.19 | +$4.88/order | | COGS ($25.20 / $28 / $30.80) | $39.81 | $37.31 | $34.81 | +$2.50/order | | Return rate (13.5% / 15% / 16.5%) | $38.55 | $37.31 | $36.08 | +$1.24/order | | CAC ($46.80 / $52 / $57.20) | — | — | — | +$5.20/order* | *CAC doesn't affect contribution margin but has the largest impact on fully-loaded profit. **Top 3 Cost Levers (ranked by impact):** 1. **CAC ($52)** — Your biggest lever. Every $1 reduction in CAC flows straight to profit. Reducing CAC by 25% to $39 saves $13/order = $5,850/month. Focus on retention and organic channels. 2. **AOV ($85)** — A 10% increase to $93.50 adds $4.88/order = $2,196/month. Test bundles, upsells, or free-shipping thresholds at $95. 3. **Return rate (15%)** — Reducing to 10% adds $3.82/order = $1,719/month. Improve sizing guides, product photos, and description accuracy. **To reach 20% net margin:** You need AOV of ~$128, or reduce CAC to ~$18, or (more realistically) a combination — AOV to $100 + CAC to $35 + return rate to 10% gets you to a $19.80 fully-loaded profit (19.8% margin).