Deal Profitability Calculator

Calculator Inputs

Currency

Display only; calculations use your numbers.

Units per order

Use >1 for bundles or multipacks.

List price (per unit)

Leave 0 if you will override the deal price.

Discount type

Applies to the list price.

Discount value

Percent or amount based on discount type.

Deal price override (per unit)

If set, it replaces list minus discount.

COGS (per unit)

Your landed product cost per unit.

Packaging cost (per order)

Boxes, inserts, labels, and materials.

Shipping cost (your cost)

Carrier cost per order, after discounts.

Shipping charged to customer

If you offer free shipping, set this to 0.

Ads cost (per order)

Average marketing spend per conversion.

Other variable cost (per order)

Picking, inserts, prep fees, or misc.

Overhead allocation (per order)

Rent, software, staff, and fixed operations.

Platform fee (%)

Marketplace fee percentage.

Platform fixed fee

Per-order listing or closing fee.

Platform fee base

Choose how your platform charges fees.

Payment fee (%)

Card or gateway percentage fee.

Payment fixed fee

Per-transaction fixed processing fee.

Payment fee base

Many processors charge on the captured total.

Affiliate/commission (%)

Optional partner commission on item subtotal.

Sales tax / VAT rate (%)

Used for both collection and payable modeling.

Tax options

Tax collected from customer

Shipping is taxable

If tax is not collected, it is treated as absorbed cost.

Expected returns rate (%)

Used to estimate post-returns profitability.

Return handling cost (per return)

Restocking, labor, labels, inspection, and losses.

COGS recovery on returns (%)

Percent of product cost you expect to recover.

Refund assumptions

Refund shipping charged to customer

Refund collected tax

These affect expected refund losses.

Target profit (per order)

Optional: suggests a price to hit this profit.

Target net margin (%)

Optional: suggests a price to hit this margin.

Reset

Tip: If your list price is unknown, use the deal price override.

Formula Used

Deal price per unit = List price − Discount (or override).
Item subtotal = Deal price per unit × Units per order.
Tax amount = Tax rate × (Item subtotal + taxable shipping).
Order revenue = Item subtotal + Shipping charged + Tax collected (optional).
Platform fee = Platform % × selected base + fixed fee.
Payment fee = Payment % × selected base + fixed fee.

Total costs (no returns) = COGS + shipping cost + packaging + ads + other + overhead + fees + tax payable.
Net profit (no returns) = Order revenue − Total costs.
Net margin = Net profit ÷ Order revenue.
Expected returns impact ≈ Return rate × (refunds + handling + unrecovered COGS).
Expected profit = Net profit − Expected returns impact.
Break-even solves Net profit = 0 using a linear model.

Returns, fee reversals, and tax remittance rules vary by platform. Use this as a planning estimate, and validate against your settlement reports.

How to Use This Calculator

Enter your list price and discount, or use the deal price override.
Fill in COGS, shipping, packaging, and marketing costs per order.
Set platform and payment fees, including how fees are charged.
Add tax settings and returns assumptions to model real outcomes.
Click Calculate profitability to view profit, margin, and break-even.
Use Download CSV or Download PDF for reporting.

Pricing Inputs That Drive Revenue

Revenue starts with deal price per unit and units per order. For bundles, changing units from 1 to 2 doubles item subtotal, but fees, shipping, and returns may not scale evenly. Use the deal price override when you already know the promo price. Track discount impact by comparing list total versus item subtotal, then add shipping charged and optional tax collected to mirror what customers pay at checkout.

Cost Layers Beyond Product Cost

Many deals fail because only COGS is considered. This calculator separates packaging, your shipping cost, ads spend, and a realistic overhead allocation per order. A small packaging cost like 1.25 plus an 8.00 shipment can exceed a 10% discount on low-priced items. If you offer free shipping, set shipping charged to 0 and watch how quickly margin compresses on heavier products or distant zones.

Fee Modeling and Base Selection

Platforms and processors often charge percentage fees on different bases. Some marketplaces apply fees on item subtotal, while others include shipping or even collected tax. The base selector lets you match your settlement rules. For example, a 10% marketplace fee on order total and a 2.9% plus 0.30 processing fee on captured total can remove several currency units from every order. Validate with a recent payout statement and update the fixed fees too.

Returns and Refund Sensitivity

Returns convert apparent profit into real loss. Use expected returns rate to estimate refund exposure, then choose whether shipping and collected tax are refunded. The calculator also models salvage recovery, so a recovery rate of 80% means you lose 20% of COGS on returned units after resale, refurbishment, or write-off. Add return handling to reflect labor, relabeling, and damaged inventory.

Using Targets for Deal Decisions

Targets turn analysis into action. Set a target profit per order to compute a suggested price, then compare that price with your planned promo. If you manage by profitability ratio, set a target net margin to solve profit equals margin times revenue. Use break-even deal price as a guardrail during flash sales: any price below break-even implies loss under your current costs. Re-run scenarios when shipping, ad costs, or fees shift.

FAQs

1) Should I include tax in revenue?

Enable tax collected only if customers pay tax on top of prices and you remit it later. The tool adds collected tax to revenue and also counts it as payable, so profit does not inflate.

2) What if my platform charges fees on tax too?

Select a fee base that includes tax collected for the platform and/or payment fee. This mirrors processors that charge on the full captured amount, including tax and sometimes shipping.

3) How do I estimate ads cost per order?

Use your average cost per conversion for the campaign driving the deal. If your ad platform reports cost per purchase, paste that value. For blended channels, use total ad spend divided by total orders.

4) What does break-even deal price mean?

It is the per-unit deal price where net profit becomes zero under your current costs and fee rules. Prices above it create profit; prices below it create a loss, before considering returns.

5) How should I set returns recovery rate?

Start with how often returned items can be resold as new, refurbished, or discounted. If half the value is recovered, use 50%. For strict hygiene products or fragile items, a lower recovery rate is more realistic.

6) Can I model bundles or multipacks?

Yes. Increase units per order and set COGS per unit accordingly. Keep packaging, shipping, and overhead as per-order values unless they scale with bundle size. This shows whether a bundle truly improves profitability.