Calculator
Formula used
- Net unit price = Selling price × (1 − Discount%).
- Gross revenue = Net unit price × Quantity.
- Effective revenue = Gross revenue × (1 − Returns%).
- Fees = Gross revenue × (Platform% + Payment%).
- Tax = Gross revenue × Tax%.
- Variable unit cost = COGS + Shipping + Packaging + Ads + Other.
- Total costs = Variable costs + Fees + Tax + Fixed costs.
- Profit = Effective revenue − Total costs.
How to use this calculator
- Enter product price, discount, and expected returns rate.
- Fill unit costs: COGS, shipping, packaging, ads, other.
- Add platform, payment, and tax percentages for your channel.
- Set quantity and any fixed costs for this batch.
- Press Submit to view profit, margin, break-even price.
- Export using Download CSV or Download PDF.
Example data table
| Scenario | Selling price | COGS | Fees% | Tax% | Returns% | Profit / unit |
|---|---|---|---|---|---|---|
| Baseline | $29.99 | $12.40 | 15% | 8% | 3% | $6.10 |
| Discount push | $29.99 | $12.40 | 15% | 8% | 3% | $3.92 |
| Higher ads | $29.99 | $12.40 | 15% | 8% | 3% | $4.30 |
Pricing sensitivity and discount impact
Discounting changes profit faster than most sellers expect because it reduces revenue while many costs stay proportional or fixed. A 10% discount on a high fee channel can remove far more than 10% of profit. Use the net unit price line to validate that promotional pricing still covers unit costs, expected returns, and percentage-based fees.
Marketplace fees and payment rates
Percentage fees are applied to gross revenue in this model, so they scale with every unit sold. Even small rate changes matter at volume: moving from 12% to 14% on a 30.00 selling price adds 0.60 cost per unit before tax. Track combined fee rate and compare scenarios across channels to identify the most efficient mix.
Returns and effective revenue
Returns reduce effective revenue, which is the cash you can plan against. A 4% return rate on 1,000 units at 25.00 net price reduces expected revenue by 1,000.00. If return shipping or restocking costs exist, include them in other variable costs. Lowering returns often improves margin more safely than raising prices.
Unit economics and contribution margin
Variable unit cost combines COGS, shipping, packaging, ads, and other per-sale expenses. Subtract variable costs, fees, and tax from effective revenue to estimate contribution before fixed costs. When contribution per unit is positive, more volume increases total profit. When negative, scaling increases losses, even if revenue looks healthy.
Break-even planning for campaigns
Break-even base price shows the minimum list price needed to reach zero profit after discount, returns, fees, and tax. Use it to set guardrails for flash sales and paid traffic tests. If break-even is not available, either rates are too high or pricing is too low. Reduce costs, negotiate fees, or adjust offers.
Operational levers to improve profit
Three levers usually move outcomes quickly: lowering shipping through fulfillment optimization, reducing ad spend by improving conversion, and increasing average order value to spread fixed costs. Use the cost composition chart to see which bucket dominates. Target the biggest bucket first, then rerun the calculator to confirm the improvement.
Record each scenario as a saved export, then compare margins side by side. Over time, your benchmarks become a pricing playbook for new products, bundles, and seasonal promotions quickly monthly.
FAQs
Do fees apply before or after discount?
Fees are estimated on gross revenue after discount, using the net selling price. Adjust rates if your platform calculates fees differently for shipping, taxes, or coupons.
Why does returns rate reduce revenue instead of adding a cost?
Returns are modeled as a reduction to effective revenue. If you also pay return shipping, refurbishing, or write-offs, add those amounts into other variable costs.
What should I enter for ads per unit?
Use your average acquisition cost per sale: ad spend divided by attributable orders. If ads vary by campaign, run multiple scenarios to see how profit changes.
How accurate is the break-even price?
It is a planning estimate based on your rates and costs. If your fee and tax rules differ by region or order type, update inputs to match your real charging structure.
Can I use this for bundles or multi-pack listings?
Yes. Treat one bundle as one unit, and enter bundle COGS, shipping, packaging, and ads per bundle. Quantity then represents the number of bundles sold.
Why can profit be positive but cash flow still feels tight?
Profit excludes timing. Payout delays, inventory purchases, ad prepayment, and refunds can pressure cash. Use exports to forecast and keep a separate cash flow tracker.