Why the shipping protection margin calculator matters
Shipping protection reads like free margin until a carrier has a bad quarter and claim frequency triples in a single month. This page turns that decision into a handful of inputs you can defend in a budget review: volume, unit cost, rate of adoption, and time. The output is a planning baseline, not a promise — it tells you whether the idea deserves a vendor quote, a pilot, or a pass.
- • Biggest swing factor: claim frequency, which is volatile
- • Second-order factor: attach rate on protected orders
- • Often ignored: the provider's revenue share, often buried in the contract
What actually changes the answer
claim frequency, which is volatile moves this number first, then attach rate on protected orders. Run a conservative case and an upside case before you commit. If the maths only works in the upside case, treat it as a time-boxed test with a kill date rather than a line in next year's plan.
What to do with the result
Model a claim-rate spike of three times your current figure. If the programme still clears, keep it; if it does not, cap payouts or move to an insured product.
Related guides
Long-form playbooks on the same topic, written by the RevenueLab editorial team.
Amazon FBA Fees Explained: A Sellers' Guide to Real Unit Economics in 2026
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Read the guideAmazon FBA Profit Guide 2026: Real Margins After Referral, FBA Fees, PPC, and Returns
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Read the guideMarginal Revenue Explained 2026: MR, MC, Elasticity, and the Profit-Max Quantity
Why MR ≠ price, the linear-demand shortcut (MR slopes 2× faster), the elasticity formula MR = P(1+1/ε), and applying MR=MC to SaaS pricing.
Read the guideFAQ
What does the shipping protection margin calculator work out?
It applies Monthly cost = (orders × cost per order) + fixed platform fee to the values you enter for protected orders per month, net claim + provider cost per protected order, platform / integration fee per month, monthly order growth. Shipping protection reads like free margin until a carrier has a bad quarter and claim frequency triples in a single month.
How accurate is this shipping protection margin calculator?
Costs only — put your net cost per protected order in, not gross premium. Claim severity varies sharply by category and destination. Replace the defaults with your own invoice, usage export, payroll data, statement, or vendor quote before making a commitment — the maths is exact, so the answer is only as good as the inputs you feed it.
Which input should I stress-test first?
claim frequency, which is volatile. Re-run with a pessimistic value for it; if the decision flips, that assumption is the thing you need real data on before signing anything. After that, check attach rate on protected orders and the provider's revenue share, often buried in the contract.
Which scenario should I start from?
Start with the preset closest to your situation — lean case, expected case, scaled case — then edit the sliders. Presets are realistic starting points, not benchmarks to match, and every change updates the result instantly.
What should I do after running the numbers?
Model a claim-rate spike of three times your current figure. If the programme still clears, keep it; if it does not, cap payouts or move to an insured product. A useful planning benchmark to compare against: Attach rates run 40–70% when opt-out; claim rates 1–3% of protected orders.
Can I share or save this calculation?
Yes. Your inputs are written into the page URL, so copying the link shares the exact scenario you are looking at — the person who opens it sees the same numbers. You can also export the inputs and results to CSV or PDF from the result card and keep it with the rest of your workings.
How this calculator is built
Independently maintained
Written by Sam Doshi and the RevenueLab editorial team. We don't sell the data feeds this tool is built on.
Sourced from primary data
Benchmarks come from public AdSense / Stripe / IRS disclosures and reader-submitted data — never third-party "$X per view" claims. Full methodology.
Last editorial review
Reviewed on a rolling quarterly cycle. Dated reviews are published on the methodology record for each calculator.
Editorial standards
See our editorial policy and disclaimer. Results are estimates, not advice.