What this calculator tells you

Shipping is not just the carrier label. Packaging, labor, and handling time belong in the cost per order if you want the margin number to be useful.

Total shipping cost = carrier cost + packaging + handling minutes ÷ 60 × hourly labor rate. Revenue share = total shipping cost / order revenue × 100.

When to use it

Use it when comparing carriers, changing packaging, or evaluating whether free shipping is priced into the product.

Use conservative inputs

Start with your landed cost, real fee rates, and a pessimistic advertising cost. The result is more useful when the assumptions are honest.

Watch the common mistake

Free shipping is often treated as a marketing cost only, while the actual fulfillment cost stays invisible in the product margin.

Frequently asked questions

Should I include inbound freight?

Inbound freight is usually part of landed product cost. This calculator focuses on outbound fulfillment cost.

How do I estimate handling labor?

Start with the average minutes needed to pick, pack, and label an order, then multiply by a realistic hourly rate.

What if shipping is charged to the customer?

Enter the shipping cost as a cost and compare it with the shipping revenue separately. The goal is to see the true net contribution.

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