Crowdfunding real margin.

Reward crowdfunding (Kickstarter, Indiegogo) sounds like free money but the margin is tighter than most creators expect. After platform fees (5-8%), payment processing (3-5%), product cost (30-40%), fulfilment (10-20%), and contingency (10%), net margin is typically 15-35% of total raised. This tool shows the real margin.

Raise 100,000. Product cost 35% = 35k. Fulfilment 15% = 15k. Platform 8% = 8k. Contingency 10% = 10k. Total costs 68k. Net margin 32k (32%). That's the cash actually available for the business after fulfilling rewards. Many campaigns deliver rewards at break-even or loss because costs are underestimated.

Successful campaigns manage margin by: pricing rewards at 2-3x production cost (not 1.5x), offering digital add-ons (high margin), keeping shipping domestic where possible (international adds 10-20% cost), building contingency into every tier. Campaigns that raise 5-10x goal often see improving margins because fixed costs (video, marketing) spread across more units.

Quick example

With total raised of 100,000 and product cost of 35% (plus fulfilment cost of 15% and platform fee of 8%), the result is 32,000.00. Change any figure and watch the output shift — it's often more useful to see the pattern than to memorise the formula.

Which inputs matter most

You enter Total Raised, Product Cost %, Fulfilment Cost %, Platform Fee %, and Contingency %. Not every input has equal weight. Flip one at a time toward extreme values to feel which ones move the needle most for your situation.

What's happening under the hood

Net margin = raised - (product + fulfilment + platform + contingency) all as % of raised. The formula is listed in full below. If the number looks off, you can retrace the calculation by hand — that's the point of showing the working.

What to do with a low result

A disappointing result is information, not a judgement. Pick the single input that dragged the figure down most and focus the next quarter on that one factor. Breadth-first improvement rarely works; depth-first on the worst input usually does.

What this doesn't capture

The score is a composite of the inputs you provide. Life context — job security, family obligations, health, housing — doesn't appear in the math but shapes the real picture. Use the number as a prompt, not a verdict.