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Channel Migration Contribution Calculator

Test whether a channel move covers lost order volume and transition spending after comparing per-order contribution on matching cost boundaries.

By PriceAndProfit Editorial Updated

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Fill in the fields: the result appears under the form, with the formula below it.

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Formula and cost boundary

Contribution change = original orders × retention × new contribution per order − original orders × old contribution per order − transition cost

Order retention is a percentage of the orders expected in the original channel. Retained expected volume may be fractional, although the original count is whole. Enter contribution after each channel's own product, fulfillment, payment and acquisition costs; do not enter revenue. Transition cost is a separate amount for the modeled period. Required retention above 100% cannot be met by retaining only this original order base. A nonpositive new contribution has no positive recovery threshold; with negative contribution, retaining more orders worsens the result. If the original channel loses enough to cover transition spending, no retained orders are needed to match that loss; this does not establish profitable operations. The model excludes later cohorts and does not forecast migration success.

Worked example: Higher unit contribution but some lost orders

The following inputs are hypothetical values for checking the calculation. They are not recommended prices, wages, margins or platform charges. Keep the units and period shown in each label when replacing them with your own records.

Inputs for this worked example
InputExample value
Orders expected in original channel 100 orders
Original orders retained after migration 80%
Original contribution per order $15
New contribution per retained order $20
Transition costs in modeled period $200
Outputs from the displayed inputs
ResultCalculated value
Contribution change after transition −$100
Expected retained orders 80 orders
Retention recovery condition 85%

Using the result

Save the input set alongside the source date of each quote or cost record. Review the cost boundary before comparing this result with another report: a contribution measure may exclude overhead, and a cash measure follows payment dates. Display rounding does not change the underlying assumptions. Recalculate when an input changes; the tool does not predict future sales or collections.

Are any rates supplied automatically?

No. Numeric fields are your inputs. Example values demonstrate arithmetic only. Check your contracts and records for the amounts that apply to your business.

Why might a result be unavailable or negative?

A missing denominator or inconsistent inputs can make the calculation undefined. Those combinations are rejected or labeled explicitly. A valid negative result remains visible because it may identify a loss or cash shortfall.

Method reference: OpenStax: Relevant Information for Decisions. Checked October 22, 2026. Relevant future cost and counterfactual comparisons; all commercial assumptions are supplied by the user.

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