Product Profit Calculator

Work out your true net profit per product after every cost — product, shipping, fees, returns, ads. Free seller profit calculator.

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The Profit Number That Actually Matters

Most sellers know their product cost and their selling price — and stop there. But the price you charge also feeds the marketplace's cut, the payment processor, the courier, the packaging, the 3% of orders that come back, and the ads you ran to get the sale. This calculator adds all of it and tells you what each unit really earns you. If that number surprises you, you're exactly who this tool is for.

How We Treat Returns

We assume a returned order refunds the full price, and the product plus its shipping are lost — the most common real-world case for small sellers. If you resell returned stock, your true return cost is lower; treat our number as the conservative side.

Margin vs Markup — Don't Mix Them Up

Margin is profit as a share of the selling price (what you keep from each dollar of revenue). Markup is profit as a share of your cost (how much you added on top). A product that costs $10 and sells for $15 has a 50% markup but only a 33% margin. Marketplaces, accountants, and investors talk margin — so should you.

What a Good Number Looks Like

As a rough guide: under 10% net margin is fragile, 10–30% is workable for most categories, and 30%+ gives you real room to advertise, discount, and absorb shocks. Digital and handmade goods often clear 50%; competitive electronics might live happily at 15%. The right target depends on your category — but whatever it is, you should know your number, not guess it.

Frequently Asked Questions

Why is my profit lower than price minus product cost?

Because product cost is usually only half the story. Platform fees, payment processing, shipping, packaging, returns, and ad spend all come out of the same selling price — this calculator adds every one of them.

How should I estimate my return rate?

Check your last 2–3 months: refunded orders divided by total orders. New sellers in fashion or footwear often see 5–10%; electronics is usually 2–4%. When in doubt, estimate high — surprises hurt more than pessimism.

What's the difference between margin and markup?

Margin is profit divided by selling price; markup is profit divided by cost. A $10-cost item sold at $15 has 33% margin but 50% markup. Always compare margins when benchmarking against other sellers.

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