Creator Merch Profit Estimator

1. Enter expected orders and price. Use a blended average for mixed products.
2. Enter product cost. Include manufacturing or supplier cost per order.
3. Add fulfillment cost. Include packing and any shipping amount paid by the creator.
4. Enter payment and refund rates. Use recent store data when available.
5. Add fixed launch costs. Include design, samples, photography, and promotion.
6. Review profit and margin. A negative result means the assumptions do not cover all entered costs.

Revenue after refunds = Orders × Selling price × (1 − Refund rate) Variable costs = Orders × (Unit product cost + Fulfillment cost) + Revenue after refunds × Payment fee rate Merch profit = Revenue after refunds − Variable costs − Fixed costs

The model treats product and fulfillment costs as incurred for all orders. Actual returned-goods recovery may change final profit.

What the result means

Estimated merch profit is revenue after refunds minus variable costs, fees, and fixed campaign expenses.

Inventory write-offs, taxes, storage, and staff time are not included unless added to costs.

Given: 600 orders at $42, $16 product cost, $5 fulfillment, 3% payment fees, 4% refunds, and $1,800 fixed costs.

Calculation: Gross sales = $25,200. Revenue after refunds = $25,200 × 96% = $24,192. Variable costs = 600 × $21 + $24,192 × 3% = $13,325.76. Profit = $24,192 − $13,325.76 − $1,800 = $9,066.24.

Result: Estimated merch profit is $9,066.24, a 37.5% margin on revenue after refunds.