Build smarter pricing using clear per-unit profitability metrics. Compare cost layers, targets, and discount effects. See margin trends instantly with exportable tables and charts.
This example uses realistic sales inputs to show how pricing, fees, discounts, and fixed cost allocation affect unit profitability.
| Currency | List Price | Discount % | Base Cost / Unit | Commission % | Fee % | Quantity | Unit Profit | Unit Margin | Breakeven Price |
|---|---|---|---|---|---|---|---|---|---|
| USD | 50.00 | 10.00% | 28.50 | 5.00% | 3.00% | 500 | 12.90 | 28.67% | 42.39 |
Net Selling Price = List Selling Price × (1 − Discount %)
Commission = Net Selling Price × Commission %
Marketplace Fee = Net Selling Price × Marketplace Fee %
Variable Cost = Product Cost + Shipping + Packaging + Variable Overhead + Commission + Marketplace Fee
Unit Profit = Net Selling Price − Variable Cost
Unit Margin % = (Unit Profit ÷ Net Selling Price) × 100
Fixed Cost per Unit = Total Fixed Costs ÷ Quantity
Fully Loaded Profit = Net Selling Price − (Variable Cost + Fixed Cost per Unit)
Breakeven List Price = Fully Loaded Cost ÷ [(1 − Discount %) × (1 − Commission % − Fee %)]
Target List Price = Fully Loaded Cost ÷ [(1 − Discount %) × ((1 − Commission % − Fee %) − Target Margin %)]
It shows how much profit remains from each unit sold after subtracting variable costs from the discounted selling price. It helps compare pricing plans quickly and highlights whether a product still earns enough after fees and discounts.
Margin measures profit as a percentage of selling price. Markup measures profit as a percentage of cost. Both are useful, but margin is often better for pricing decisions because revenue targets usually depend on selling price.
Many sales channels charge fees based on transaction value. Linking them to the discounted selling price makes the estimate more realistic, especially for ecommerce, distributors, agents, online marketplaces, and card-processing arrangements.
Yes, when you want a fuller profitability picture. Variable profit shows contribution before fixed costs. Fully loaded profit spreads fixed costs across units, which is helpful for batch decisions, pricing reviews, and short-term planning.
It estimates the minimum list selling price needed to cover both variable costs and allocated fixed costs under the current discount and fee structure. It is especially helpful when negotiating prices or adjusting promotions.
Price sensitivity analysis reveals how profit and margin react when list price changes. This helps you see whether a small price increase meaningfully improves results or whether a discount harms profitability too much.
Yes. Replace product cost with direct service delivery cost, include any per-job materials, and use the same logic for commissions, platform fees, and fixed operating costs. The structure works for products and many services.
That happens when your target margin is too high for the entered discount and fee structure. If percentage deductions consume too much revenue, no realistic selling price can satisfy the requested margin formula.
Important Note: All the Calculators listed in this site are for educational purpose only and we do not guarentee the accuracy of results. Please do consult with other sources as well.