Real Product Profit Calculator

Calculate how much you really earn on each sale, after VAT/sales tax, platform and payment gateway fees, shipping, packaging, advertising, and expected returns. Most sellers calculate margin on the sale price and forget two or three of these costs — this breakdown includes all of them.

Amazon, Shopify, marketplace… the % they keep from each sale.

Stripe, PayPal, Redsys…

To estimate total monthly profit.

How is it calculated?

Real revenue = sale price ÷ (1 + VAT/100), because VAT is collected for the tax authority, not revenue you keep. From that real revenue, subtract the fees (platform + gateway, as a % of the sale price), the fixed per-unit costs (product, shipping, packaging, other), the advertising spend per sale, and the expected cost of returns (return rate × what you lose on each one: product + shipping). The result is the net profit per unit. Margin is that profit divided by the sale price; markup is the same profit divided by the product cost — two different ways of measuring the same thing, and both are used in ecommerce. Max CPA is the profit you'd have left if you spent nothing on advertising: the most you can pay to acquire that sale without losing money. Min ROAS is the sale price divided by that max CPA — the minimum revenue you need to generate per unit spent on ads.

Examples

  • Product at 30 (VAT incl.), cost 10, platform fee 15% + gateway 1.5%, 5% returns

    Net profit: 3.19 per sale (margin 10.64%). With 200 sales/month, about 638.68 in monthly profit. Max CPA: 5.19.

  • Product at 60, cost 22, platform fee 12% + gateway 2%, 8% returns

    Net profit: 5.57 per sale (margin 9.28%). With 150 sales/month, about 835.02 in monthly profit. Max CPA: 10.57.

What goes into the real profit of a sale

With this per-unit profit you can set the minimum profitable price, calculate sales needed, or check your minimum ROAS and maximum CPA.

ItemHow it factors in
Price excluding sales taxThe tax isn't revenue you keep
Platform and gateway feesPercentage of the sale price
Product, shipping, packaging and otherPer-unit costs
Advertising per saleAverage cost of acquiring that sale
Expected returnsReturn rate × loss per return

Frequently asked questions

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