Ecommerce & profit
Product Profit Calculator
Subtract itemized product, delivery, transaction, advertising, and other costs from the matching sales revenue.
Use this for a currency profit amount on one product or order cohort. Use profit margin for that profit as a percentage of revenue.
What the result means
The result is revenue left after every listed cost. Negative values represent losses. It is a fully loaded profit only when other costs include every relevant overhead and expense allocation.
The formula
Product revenue - cost of goods - shipping - fees - advertising spend - other allocated costs
Results are displayed to at most two decimal places. Calculations use the unrounded inputs.
A worked example
Put the formula to work
- Product revenue (currency)
- 1,000
- Cost of goods (currency)
- 350
- Shipping and fulfillment (currency)
- 100
- Transaction and marketplace fees (currency)
- 50
- Allocated advertising spend (currency)
- 200
- Other allocated costs (currency)
- 75
Product profit (input currency): 225.00
Product sales of 1,000 less 775 in itemized costs leave 225 of product profit.
How to use this calculator
- Pick a product, batch, or order cohort and total its net sales.
- Attach goods, fulfillment, and transaction costs to that scope.
- Allocate advertising and any remaining expenses once each.
- Subtract the combined costs and inspect any loss before scaling sales.
Why this number matters
Itemized product economics reveal where a seemingly strong seller loses contribution through shipping, fees, or customer acquisition.
Input definitions
- Product revenue (currency)
- Net revenue for the product or batch; keep every cost on this same scope.
- Cost of goods (currency)
- Landed purchase or manufacturing cost of the units sold.
- Shipping and fulfillment (currency)
- Packing, handling, fulfillment, and carrier costs for these sales.
- Transaction and marketplace fees (currency)
- Processing, listing, and marketplace charges attributable to this scope.
- Allocated advertising spend (currency)
- Advertising expense assigned to these product sales; use a consistent allocation rule.
- Other allocated costs (currency)
- Remaining expenses such as returns handling, support, or an overhead allocation; exclude amounts already entered.
Assumptions and limitations
- Shared-cost allocations are judgment calls and can change the result.
- Future repeat revenue and unsold inventory are not included.
- Cash receipts and payments can occur in different periods from the reported profit.
Methodology
The default result and worked example use the same calculation functions as the interactive tool. The formula cannot verify the quality or scope of your source data.
Read our calculation methodology
Last updated .