How we calculate profit after costs
Plain explanation of contribution margin in Margin Keep — what is included, what is estimated, and why missing costs never block checkout.
Margin Keep estimates contribution margin for a cart or simulation. That means profit after product cost and the everyday selling costs you set in Get started — not full accounting profit.
The simple math
- Start from selling price after discounts.
- Subtract product cost (known from Shopify or your spreadsheet, estimated from your default cost %, or missing).
- Subtract card fees, packaging, and shipping help from Get started.
What is left is contribution margin. It does not include ads, rent, salaries, taxes, or returns.
Cost confidence
- High — real unit costs for the items in play
- Estimated — using your default product cost %
- Missing or low — not enough to block checkout; Margin Keep only warns or logs
Estimated margin protected
On Overview, estimated margin protected is the profit we think you kept (or would have kept) when a rule would have blocked or did block a cart that fell below your floors. Treat it as a guide — it gets more trustworthy as cost coverage improves.
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