Multi-SKU Contribution & Profit Matrix Calculator
Rank your products by gross profit and sort them into A, B, and C tiers to see which SKUs carry your store.
Fill in as many SKUs as you need. Rows with no price or no units are ignored. Use the button below to add up to 10 SKUs.
How the SKU Profitability Matrix Calculator Works
Most stores earn the majority of their profit from a small number of products, while a long tail of SKUs adds work, inventory, and complexity for very little return. Revenue rankings hide this, because a high-revenue product with thin margins can contribute less than a smaller, better-priced one.
Enter the price, unit cost, monthly units, and pick-and-pack cost for each product. The calculator finds each SKU's revenue and gross profit, ranks them from most to least profit, and shows each one's share of your profit. It then assigns A, B, and C tiers based on cumulative profit so you can see which products to protect, which to improve, and which to question. Loss-making SKUs are flagged.
Key Formulas Behind This Tool
- SKU Revenue: Unit Price x Units Sold per Month
- SKU Gross Profit: (Unit Price - Unit COGS - Pick and Pack Cost per Unit) x Units Sold
- SKU Margin (%): (SKU Gross Profit / SKU Revenue) x 100
- Profit Share (%): SKU Gross Profit / Total Profit of Profitable SKUs x 100
- A Tier: SKUs that make up the first 80% of cumulative profit
- B Tier: SKUs that make up the next 15% of cumulative profit
- C Tier: All remaining SKUs, plus any SKU that loses money
Frequently Asked Questions (FAQ)
What is an ABC analysis of products?
It ranks products by their contribution and groups them into tiers. A-tier products produce most of your profit and deserve the most attention, B-tier products are the middle group, and C-tier products add little profit and are candidates for repricing, bundling, or removal.
How are the A, B, and C tiers set here?
Products are sorted from most to least profit. A is the group that makes up the first 80% of total profit, B covers the next 15%, and C covers the rest. Any SKU that loses money is placed in C and flagged. The 80% and 95% lines are a common convention, not a rule.
What should I include in picking and packing cost per unit?
Include warehouse labor, pick and pack fees from a fulfillment partner, boxes, and fillers that you can tie to each unit. Outbound postage and ad spend can also be added here if you want them reflected in the SKU profit.
Why does profit share not always add up to 100%?
Profit share is measured against the total profit of profitable SKUs. Loss-making SKUs show 0% so they do not distort the ranking, but their losses still reduce the total gross profit shown in the main result.
What should I do with C-tier products?
Review price, cost, and volume. Options include raising the price, lowering the cost, bundling with a stronger product, running clearance, or dropping the SKU to free up cash and shelf space. Check whether the SKU brings in customers who later buy A-tier products before you cut it.