Product Profit Calculator - Calculate Product Profitability
Seller Bookkeeping

Product Profit Calculator

Calculate gross profit, net profit, and profit margins for each product instantly

Understanding Product Profitability

Product profitability is the difference between what you sell a product for and all the costs to sell it. This includes Cost of Goods Sold (COGS) plus all platform fees, marketing spend, and other operating expenses.

The critical formula: Revenue - COGS - Fees - Expenses = Net Profit

Most sellers only look at gross profit (sale price - COGS) and miss platform fees and expenses, which can eliminate 30-50% of their apparent profits. This calculator shows your REAL profitability after ALL costs.

Gross Profit Calculator

Sale Price - COGS = Gross Profit

What customers pay for the product
Wholesale + shipping + packaging + duties + QC
Units sold (optional - for total profit)
Sale Price (per unit): $0.00
- COGS (per unit): $0.00
Gross Profit (per unit): $0.00

Real-World Examples

Example 1: Amazon FBA Seller - PROFITABLE

  • Sale Price: $25.00
  • COGS: $10.00
  • Referral Fee: $3.75 (15%)
  • Fulfillment Fee: $2.92
  • PPC/Marketing: $1.00
Net Profit = $25 - $10 - $3.75 - $2.92 - $1 = $7.33/unit (29% margin)
On 100 units = $733 profit

Example 2: Amazon FBA Seller - UNPROFITABLE (LOSS)

  • Sale Price: $15.00
  • COGS: $8.00
  • Referral Fee: $2.25 (15%)
  • Fulfillment Fee: $3.50
  • PPC/Marketing: $2.00
Net LOSS = $15 - $8 - $2.25 - $3.50 - $2 = -$0.75/unit (LOSING $0.75 PER SALE!)
This product should be discontinued or repriced!

Example 3: Shopify Store - Profit Margin Comparison

  • Product A - Gross Margin: ($25 - $10) / $25 = 60%
  • Product B - Gross Margin: ($20 - $12) / $20 = 40%
Product A is more profitable per dollar of sales. Even though Product B has lower volume, focus on high-margin products like Product A.

Critical Profit Insights

  • Gross ≠ Net: Many sellers see $10 gross profit and think they keep $10. They don't—platform fees can cut this to $5 or less.
  • Calculate per SKU: Different products have different fees and costs. Calculate profitability individually.
  • Low-margin products kill businesses: Selling 100 units at $0.50 profit = $50. Selling 10 units at $5 profit = $50 with 10% of the work.
  • Review monthly: Fees change seasonally (Q4 storage), competitor prices drop, and your actual margins shift. Recalculate regularly.