Business
Product Profit Calculator
See profit after product cost, percentage fees and fixed fees on each sale.
What is true profit on a product?
Selling price is not profit. What you keep after product cost, payment or marketplace fees, and per-order costs such as packaging is the figure that funds ads, overheads and your wage. This calculator subtracts those costs from price so you can see cash profit and margin on a single unit. Advertising is better modelled on the ad spend profit page, or folded in as a fixed fee if you prefer a fully loaded unit view. Use realistic fees from your latest payout report rather than brochure rates. For landed imports, start with product landed cost so the cost field is complete. Estimates for planning only — not bookkeeping advice. Bundle SKUs need the combined cost of every component plus one set of fees. If payment processors charge a fixed pence fee as well as a percentage, include both or your margin will look healthier than the payout report.
Worked example
Price £28, product cost £11, marketplace fee 12% (£3.36), packaging £1.20. Profit = 28 − 11 − 3.36 − 1.20 = £12.44, about 44% margin on selling price. If ads average £4 per order, true contribution falls to £8.44 — still healthy, but no longer ‘half the ticket’.
Limits and assumptions
Returns, chargebacks and storage fees are omitted unless you add them. VAT handling depends on how you enter price and cost — keep both ex-VAT or both inc-VAT. Currency conversion on overseas sales is not modelled. Multi-currency payouts and withheld reserves are outside the simple unit view.
Frequently asked questions
What costs belong in product profit?
Goods cost, selling fees, packaging and any other per-order cash cost. Keep monthly overheads out unless you allocate them deliberately.
Is margin on cost or on price?
This tool reports profit as a share of selling price (margin). Markup on cost is a different percentage — see markup vs margin.
How do I include Amazon FBA fees?
Put referral and fulfilment into the fee fields (or a single combined fee). Pull numbers from the fee preview, not a blog post.
Should discounts change the selling price?
Yes — enter the price the customer actually pays after codes, then re-check profitability.
Where do shipping costs go?
If you charge shipping separately and it covers postage, omit it. If you absorb postage, add it as a per-order cost.