Free resources / Margin Calculator
Free calculator ยท No subscription required
See what each sales channel leaves after product costs, commissions, deductions, and fulfillment. Compare four channels before you agree to the terms.
Live scenario
Defaults are examples, not contractual rates. Replace them with your actual channel, distributor, broker, buyer, freight, and 3PL terms.
| Input / Output | DTC | Faire | Distributor | Direct Retail |
|---|---|---|---|---|
| Retailer margin % | ||||
| Distributor discount % | ||||
| Broker commission % | ||||
| Platform / channel commission % | ||||
| Fixed fee allocated / unit | ||||
| Co-op / MCB / spoilage % | ||||
| Outbound freight / unit | ||||
| Pick & pack / 3PL / unit | ||||
| Monthly fixed channel cost | ||||
| Brand invoice / unit | ||||
| Total variable cost / unit | ||||
| Contribution / unit | ||||
| Contribution margin | ||||
| Contribution / case | ||||
| Break-even cases / month | ||||
| Annual contribution after entered fixed costs |
Checking account access.
All currency inputs are USD. Contribution is invoice revenue less the variable costs entered here. It is not accounting net profit. The annual estimate also deducts the monthly fixed channel cost you enter, but excludes taxes, general overhead, and any costs you have not entered. Percent-based commissions and allowances in this model apply to brand invoice revenue. The CSV preserves this scenario; the Excel workbook below is a separate editable template.
Faire's published North America marketplace commission is currently 15%, with a $10 new-customer fee on the first marketplace order. If that fee applies to your scenario, allocate it across the units in the order using the fixed-fee row. Confirm current terms in your account before pricing. Source.
Take the model with you
Includes Global Inputs, Channel Margin Waterfall, and Channel Comparison Dashboard with formulas, editable channel assumptions, target-margin flags, monthly fixed channel costs, break-even case volume, annualized case economics, and source notes.
Why this matters
A product can have healthy gross margin at MSRP and still become unattractive once a retailer's required margin, a distributor's margin, broker commission, program allowances, freight, and handling are layered into the transaction. The relevant question is not "What is my gross margin?" It is "What cash is left to the brand after this specific channel stack?"
Distributor onboarding, broker negotiations, Faire pricing, new grocery accounts, 3PL changes, case-pack changes, and promotional commitments.
Low-dollar SKUs with fixed processing fees, heavy case packs, high parcel freight, broker plus distributor stacking, co-op deductions, and channels whose target retail price forces your invoice below a sustainable level.
A spreadsheet is a decision model. SKU Clear turns that logic into ongoing margin tracking tied to each SKU and channel so the answer stays current when costs or channel assumptions change.
When the costs or buyer terms change
Save and reopen calculator scenarios with a free account. Growth connects ongoing offer economics, channel margins, buyer sharing, and account maintenance to your catalog. Revisit the work when a buyer changes the terms or a supplier changes the cost.
Free includes a buyer-offer preview and a reviewed product package. Saved deal economics and ongoing channel margins require Growth or above. Use Save scenario to store a snapshot in your free account. Changes are saved only when you choose to save again.No. Margin divides profit by the selling price; markup divides profit by cost. In this model, retailer margin reduces MSRP to a retailer purchase price, and the distributor percentage then reduces that amount to your brand invoice. Confirm the price basis in the actual agreement.
If each case contributes zero or a loss after variable costs, selling more cases cannot cover positive fixed costs. The calculator marks that break-even result as not achievable. Correct the price, deductions, or costs before relying on more volume.
The public calculator compares scenarios, exports CSVs, and saves snapshots in a free account. Growth connects ongoing margins and saved buyer-offer economics to your account's products, channels, and buyer work. You can try a buyer-offer preview free before subscribing.