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OfferMargin

Model an offer before you recommend it.

Compare pricing, payment timing, refunds, processing, delivery costs, and sales commission in one consistent model.

Planning only, not accounting, legal, tax, or investment advice. Scenarios stay in this browser. Contribution margin is not profit.

Scenarios

Plain text only. The name is shown exactly as you type it.

Formatting only. No amount is converted between currencies.

Manage current scenario

Your scenarios stay in this browser tab and clear when you refresh or close it.

Live contribution margin

$2,050.00

68.3%

Expected collected

$3,000.00

Before commission

$2,350.00

Updates as you edit. Contribution margin is not net profit.

Start here

What the client is charged

Enter the commercial structure first. A useful result appears before you refine the assumptions below.

Billing model
USD

What the client is charged for the offer itself, before any deposit.

USD

Charged in month one, in addition to the price above. Use 0 if there is no deposit.

month 1 to 12

When the first main price charge happens. A deposit is always charged in month one.

Refine the model

RefundsWhat a refund would cover, and how much of it you expect to actually pay out.

This describes the refund rules of the offer you sell. It is a scenario assumption you are modelling, not a legal conclusion and not an OfferMargin policy.

% of the eligible amount

How much of the refundable amount you expect to actually refund.

Is the deposit refundable?

Nothing is assumed here. A deposit is only refundable if you say it is.

A refund would cover
What it costs youPayment processing, then the cost of actually delivering the offer.

Payment processing

Both fields start at zero. No provider's pricing is applied for you. Copy the numbers from your own processor's published pricing.

% of processed payments

Charged on the gross amount processed in the period being shown.

USD

Multiplied by the number of billing transactions in the period, not by delivery periods.

This version does not model processing fee recovery on refunded payments. Providers differ in whether fees are returned, so nothing is assumed here. Fees are calculated on everything processed, including amounts you later refund.

Cost of delivering the offer

USD

Everything it costs you to start delivering, counted a single time.

USD

Include your own time here if you want it counted. Contribution margin does not value it otherwise.

periods

How many times you deliver. This is separate from how many times the client is charged.

months

1 for monthly delivery, 3 for quarterly, and so on. Delivery starts in month one.

What the representative earnsCommission is calculated last, on a base that is stated rather than assumed.

Leave this off to see what the offer leaves before any commission is paid.

Commission is
%

There is no arbitrary ceiling here. High percentages are allowed, checked against safe bounds, and flagged with a warning.

The base is stated here and used everywhere, including the maximum sustainable commission.

How often the representative is paid

This offer is a single payment, so only a one time commission can be modelled.

Off by default. The deposit is only part of the commission base if you choose it here.

Results

Signature program: contribution margin over twelve months is $2,050.00, 68.3% of expected collected revenue.

Contribution margin

$2,050.00

68.3%

Contract value

$3,000.00

Contribution margin is what remains inside this model after refunds, processing, delivery cost, and commission. It is not net profit.

Twelve month projection

Months 1 to 12 only. Charges, delivery periods, and commission periods that fall in month 13 or later are never counted here.

Gross billed revenue1 billing transaction in this period, including any deposit, counted once.
$3,000.00
Modelled expected refundsYour refund assumption applied to $3,000.00 of refundable charges. A scenario assumption, not a legal conclusion.
$0.00
Expected collected revenueWhat you expect to keep of what was billed, before any cost.
$3,000.00
Processing feesPercentage on $3,000.00 processed, plus the fixed fee on 1 transaction.
$0.00
Cost of delivering the offerSetup cost once, plus 3 delivery periods in this period. Delivery periods are counted separately from billing transactions.
$650.00
Contribution margin before commissionWhat the offer leaves before anyone is paid for selling it.
$2,350.00
Representative earnings1 commission period on a base of $3,000.00 (expected collected revenue).
$300.00
Contribution margin68.3% of expected collected revenue.
$2,050.00

Maximum sustainable commission

The largest total commission that would bring contribution margin to exactly zero over the twelve month projection.

Up to $2,350.00 in total commission, which is 78.3% of the commission base.

Still unused under your current settings: $2,050.00. This is a boundary of the model, not a recommendation to pay it.

What these words mean

Contribution margin excludes overhead, tax, acquisition cost, financing cost, chargebacks beyond the modeled refund assumption, and the value of the owner's time unless entered as fulfillment cost. It is not net profit.

Owner proceeds before overhead and tax are, in this version, the same number as contribution margin. Showing both under two names would suggest a precision the model does not have, so one figure is shown and the terminology is explained here instead.

This is a planning model. It is not accounting, legal, tax, or investment advice, and it is not a statement of profit.

Scheduled charges behind these numbers

Inside the twelve month projection

  • Full payment$3,000.00
    Month
    1
    Refund would cover
    Yes
    Modelled refund
    $0.00

Compare two scenarios

Both sides are measured across months 1 to 12, so a longer committed term does not make one side look bigger than it is over the same window.

Signature program

Expected collected revenue
$3,000.00
Contribution margin
$2,050.00
Contribution margin rate
68.3%

Monthly retainer

Expected collected revenue
$3,600.00
Contribution margin
$1,920.00
Contribution margin rate
53.3%

The difference, second minus first

Gross billed revenue
+$600.00
Expected collected revenue
+$600.00
Processing fees
$0.00
Cost of delivering the offer
+$670.00
Representative earnings
+$60.00
Contribution margin
−$130.00
Contribution margin rateShown in percentage points, because a percentage of a percentage would be ambiguous.
−15.0 pp

For advisors with repeated client work

Do you model offers for clients?

The calculator stays free. We are validating whether the repeated professional workflow around it is worth building and paying for. No workspace, subscription, or paid analysis is being sold here.

  • Repeated client setup

    How often are you recreating the same offer model, assumptions, and explanation for a different client?

  • Consistent recommendations

    Would one shared calculation method make pricing and commission recommendations easier to defend?

  • Reusable client output

    Would a saved case, reusable template, or read-only summary remove meaningful work from the next engagement?

Apply for the founding advisor pilot

The application is separate from your calculator scenarios. Your scenario numbers remain in this browser tab.