What is Customer Margin?
Customer Margin is the money left after covering the three major cost areas that usually drive delivery and growth:
- Product costs
- People costs
- Promotion costs
It helps show whether your current business model has enough room to support profit, cash flow, and future investment.
Customer Margin is only one part of the picture. A financially sound business also needs healthy profit margin and cash flow margin.
Run your numbers
Enter your monthly figures as positive amounts. The calculator does the subtraction for you and compares your result against benchmarks for your business type.
Your business
Monthly figures (AUD)
Total revenue from customers this month — before any costs.
Direct cost of goods, materials, or what you deliver.
Wages, salaries, contractors and subcontractors — including a fair owner wage.
Marketing, advertising, and sales activity.
Customer Margin
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0%
Enter your monthly sales above to see your Customer Margin and how it compares against healthy benchmarks.
Cost breakdown
Product business benchmarks| Item | Amount | % of sales | Benchmark | Result |
|---|---|---|---|---|
| Product Costs | — | — | ≤ 50% | — |
| People Costs | — | — | ≤ 15% | — |
| Promotion Costs | — | — | ≤ 15% | — |
| Customer Margin | — | — | ≥ 20% | — |
Benchmarks are guides, not rules. Every business has a different mix — use these as a starting point for an honest conversation about your numbers.