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Contribution Margin After Ads Calculator

Calculate contribution after product costs, fulfilment, transaction fees, advertising and other variable costs.

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INPUT

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Updates as valid inputs change.
Method & formula

All entered variable costs and ad spend are subtracted from revenue. The remaining contribution is then divided by revenue to express the after-ads margin.

  • Contribution after ads = revenue - COGS - fulfilment - transaction fees - ad spend - other variable costs
Example

10,000 revenue less 7,300 of entered variable costs and ad spend leaves 2,700 contribution after ads, or 27%.

FAQ

Does this include fixed overhead?

No. This model is for variable contribution after ads. Fixed payroll, rent and other overhead should be analysed separately.

Is this a forecast?

No. It is deterministic planning arithmetic based on the assumptions you enter. Actual commercial performance can differ.

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