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Contribution margin calculator per patient
Enter price and variable cost per order to get contribution margin per order, the contribution margin ratio and the total across your orders.
Contribution margin per patient
Enter your numbers to see the result.
Free tool by Telehealth Media · telehealthmedia.com
Need the variable cost? The break-even ROAS calculator builds it line by line.
How it works
Contribution margin is what each order leaves after the costs that rise and fall with orders. It is the money available to pay for acquisition, overheads and profit.
- Contribution margin per order = price - variable cost per order
- Contribution margin ratio = contribution margin / price x 100
- Total contribution margin = contribution margin per order x orders
In telehealth, variable cost per order includes more than the product: medication, the clinician consult, the pharmacy fee, shipping, payment processing and an allowance for refunds and chargebacks. The break-even ROAS calculator builds that number line by line.
Contribution margin per first order is also your break-even CPA: the most you can pay for a patient on the first order and not lose money.
Worked example
A first month is priced at 199 USD and costs 103.92 USD to deliver, across 1,000 orders.
| Step | Calculation | Result |
|---|---|---|
| Contribution margin per order | 199 USD - 103.92 USD | 95.08 USD |
| Contribution margin ratio | 95.08 / 199 x 100 | 47.8% |
| Total contribution margin | 95.08 USD x 1,000 | 95,080 USD |
These numbers illustrate the formula; enter your own.
Telehealth notes
- Fixed costs such as salaries, software and rent do not belong in variable cost. They come out of total contribution margin later.
- Some consult costs are paid whether or not a prescription is written. Spread those over the patients who do convert.
- Refills often have a different cost per order than the first fill, for example no consult. Work out each separately if they differ.
- If contribution margin is zero or negative, no amount of ad efficiency fixes it. The price or the cost stack has to change first.
Questions
What is the contribution margin formula?
Contribution margin equals price minus variable cost. The ratio is that margin divided by price.
What counts as a variable cost for a telehealth order?
Costs that come with each order: medication, consult, pharmacy fee, shipping, payment processing and refunds.
How is contribution margin different from gross margin?
Gross margin usually subtracts only product cost. Contribution margin subtracts every cost that scales with orders, which is more useful for ad decisions.
Are my numbers stored?
No. The calculation runs in your browser and nothing is sent to us.