Contract Manufacturing, Job Shop Quoting & Make-to-Order calculator
Order Profitability Calculator
Use this calculator to multiply contribution per unit, order quantity, shipment yield, and collectable commercial scope into an expected profitability figure for a job.
What this calculator does
- Estimate expected contribution dollars for a make-to-order customer order.
- deciding whether a customer order is attractive enough to accept or prioritize
- The result estimates contribution dollars expected from the order.
Formula used
- gross order contribution before risk = contribution margin per shipped unit × customer order quantity
- expected order contribution = gross order contribution before risk × expected shippable yield × collectable order scope
Inputs explained
- contribution margin per shipped unit: Use price minus variable material, labor, outside processing, packaging, freight, commission, and warranty cost per unit.
- customer order quantity: Use the release quantity, blanket order release, batch quantity, or quoted lot size being evaluated.
- expected shippable yield: Use expected good shipped quantity after scrap, rework, inspection fallout, and customer acceptance risk.
- collectable order scope: Use 100% for firm orders or less for split awards, uncertain releases, customer credits, or disputed commercial terms.
How to use the result
- Use it to rank jobs, prioritize capacity, review discounts, and decide whether to accept low-margin work.
- Treat the result as an estimate until the RFQ package, customer drawing revision, material quote, routing, setup standard, shop rate, outside service quote, scrap history, open capacity, due date, and quoted commercial terms are confirmed for the same job, lot size, and customer order.
Common questions
- What is the order profitability calculator for? Use this calculator to multiply contribution per unit, order quantity, shipment yield, and collectable commercial scope into an expected profitability figure for a job.
- What information should I enter? Enter contribution margin per shipped unit, customer order quantity, expected shippable yield, and collectable order scope from the same RFQ, customer order, routing, capacity window, or quote scenario.
- What does the result tell me? The result estimates contribution dollars expected from the order.
- When is the result only an estimate? Treat the result as an estimate until the RFQ package, customer drawing revision, material quote, routing, setup standard, shop rate, outside service quote, scrap history, open capacity, due date, and quoted commercial terms are confirmed for the same job, lot size, and customer order.
Last reviewed 2026-05-12.