Use contribution, not revenue
A $100 attributed order does not create $100 of value. Apply gross margin before comparing the order with software cost.
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Translate an app fee into the incremental orders, contribution profit, and operator time it must create before it earns a permanent place in your stack.
The modeled benefit is $729 above cost.
Use incremental orders only: orders that would not have happened without this app. Revenue is converted to contribution using your gross-margin input; attributed revenue is not the same as profit.
Put the result into the full app audit ↗Three rules
A $100 attributed order does not create $100 of value. Apply gross margin before comparing the order with software cost.
Use orders the app caused above the baseline—not every order that passed through an app-controlled touchpoint.
Hours saved count only when the workflow actually disappears or the released capacity is used for higher-value work.
This model is an editorial decision aid, not financial advice or a promise of causality. It excludes taxes, payment processing, refunds, discounts, financing cost, and downstream retention unless you incorporate them into conservative inputs.
The model
(Monthly app fee × evaluation months) + setup and migration cost.
(Incremental orders × average order value × gross margin × months) + (hours saved × hourly value × months).
ROI is net value divided by total test cost. Setup payback uses monthly benefit after the recurring subscription.
Before you install
Choose one primary job for the app: create incremental orders, prevent a measurable loss, or remove operator work. Save the pre-install baseline, the exact plan price, implementation hours, and the date the test starts.
For conversion tools, prefer a controlled experiment or a comparable holdout. When that is impossible, use a conservative before-and-after window and record promotions, traffic changes, stockouts, and seasonality that could explain the result.
At the end of the window, keep, downgrade, replace, or remove the app. “We already installed it” is not evidence.
Questions operators ask
Use contribution profit, not attributed revenue. This calculator multiplies average order value by gross margin before comparing incremental orders with the app's subscription and setup cost.
An incremental order is one that would not have occurred without the app. Orders merely touched by a popup, review widget, email, or upsell are not automatically incremental.
Use a window long enough to cover a representative buying cycle and any setup period. Document the baseline before installation, choose one primary success metric, and include migration and operator time in the cost.