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Physical Product Profit Estimator

The Physical Product Profit Estimator calculates expected profit from selling tangible goods after unit cost, marketplace or payment fees, shipping subsidy, and other variable expenses. It reports profit per unit, total profit at a selected sales volume, and margin on revenue.

The estimator is useful for ecommerce sellers, makers, wholesalers, and marketplace merchants comparing products or channels. Physical goods often carry costs that digital offers do not, including packaging, freight, storage, damage, and returns. Entering a realistic per-unit allowance produces a more decision-ready result than subtracting product cost alone.

Unit economics and volume

USD
USD
%
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units
Result
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Total profit
Profit per unit—
Total revenue—
Total variable cost—
Profit margin—

1. Enter unit selling price
Use the amount received before transaction fees and taxes.

2. Add landed product cost
Include purchase or manufacturing cost plus packaging and inbound freight allocated per unit.

3. Enter selling fees
Use the percentage charged by the marketplace or payment processor.

4. Add shipping and other variable costs
Include the seller-paid portion of outbound shipping, handling, return allowance, or other per-unit expenses.

5. Set sales volume
Enter expected units to calculate total revenue, cost, and profit.

Fee per unit = Selling price × Fee rate | Profit per unit = Price − Unit cost − Fee − Shipping − Other variable cost | Total profit = Profit per unit × Units sold | Margin = Total profit ÷ Total revenue × 100

Where:

  • All dollar inputs except total profit are per unit.
  • Units sold is the planned or actual quantity.

Assumptions: Fixed overhead, inventory financing, taxes, and unsold stock are excluded unless allocated to other variable cost.

What the result means

Total profit is the contribution from the selected sales volume after the entered variable costs.

A positive unit profit can still be insufficient to cover fixed operating expenses.

Given:
Price $65; unit cost $24; fee rate 12%; shipping $7.50; other cost $2; 100 units.

Calculation:
Fee = $65 × 0.12 = $7.80. Profit per unit = $65 − $24 − $7.80 − $7.50 − $2 = $23.70. Total profit = $23.70 × 100 = $2,370.

Result:
$2,370 total profit and $23.70 profit per unit.

Interpretation:
The selected volume produces a 36.46% contribution margin before fixed overhead and taxes.

What belongs in product and packaging cost?

Include the landed cost required to make one sellable unit: purchase or production cost, packaging, and appropriately allocated inbound freight.

Should customer-paid shipping be added to price?

If it is recognized as revenue, add it to selling price and include the full carrier and handling cost in shipping. Apply the same accounting treatment consistently.

How can expected returns be included?

Convert historical return losses into an average cost per sold unit and add it to other variable cost.

Why can total profit be positive while cash flow is negative?

Inventory purchases and payment timing can consume cash before sales are collected. This calculator measures profit contribution, not working-capital timing.

How is profit margin different from ROI on inventory?

Margin compares profit with sales revenue. Inventory ROI compares profit with the capital invested in inventory over a period.