Use the result before launching a product, changing suppliers, or testing a new sales channel. A product can have a healthy-looking price while still producing a weak margin once every per-sale cost is included.
The calculator reports profit per unit and the total result at your expected sales volume. This lets you compare products that may have different prices, costs, and fee structures.
Start with the selling price and direct product cost per unit. Then account for percentage fees, shipping or fulfillment, and any fixed cost you allocate to each unit.
How to Calculate Product Profitability
What affects product profitability
- Selling price
- Unit product cost
- Marketplace or payment percentage fees
- Shipping, fulfillment, and allocated fixed costs
How this calculator works
Example
At 100 units sold for $24, with $8 product cost, $2 shipping, 8% fees, and $1 allocated fixed cost, estimated profit is $11.08/unit and $1,108 total profit, with a margin of about 46.2%.
Important assumptions
Results are planning estimates. Replace the default assumptions with your actual costs, rates, shipping arrangements, discounts, and sales volume. Marketplace and payment fees can change over time.