Product Profit Calculator
A selling price is only part of the picture. Add the cost of your product, packaging, postage and fees to see your contribution per order.
Enter your selling costs
Discounts, tax, advertising and returns
Sale tax is removed from revenue. Enter costs net of recoverable VAT when appropriate. This tool does not determine tax obligations or recovery rights.
Offsite Ads applies to attributed orders only. For a capped charge, enter 0% and add the exact charge to advertising. Return loss includes the net refund, unrecoverable costs and any fee credits.
Estimated contribution per order
52.92% contribution margin
- Revenue excluding entered tax
- £24.00
- Product & fulfilment
- £11.30
- Fees & fee VAT
- £0.00
- Ads & return loss
- £0.00
- After allocated overhead
- £12.70
Contribution is what remains before general overhead and income or corporation tax. Calculation aid; not accounting or tax advice.
- Price for target margin
- £18.84
- Variable-cost break-even price
- £11.30
How to use this calculator
Enter your values in one currency. The result updates as you type. Check the fee and tax assumptions before using it for a pricing decision, then download a PDF if you want a record.
How the result is calculated
Contribution is revenue excluding entered tax, less product costs, fulfilment, fees, advertising and expected return losses. Entered overhead is shown separately. It is not profit after business taxes.
Worked example
A £24 product with £7.50 product cost, £0.60 packaging and £3.20 postage leaves £12.70 before fees and overhead.
What should I include in my costs?
Include the costs that change with the item or order: materials, purchasing, making time, packaging, fulfilment and applicable fees. Allocate wider overhead separately. An omitted cost will make the estimate look better than it should.
Does this calculate my tax liability?
No. Entered tax treatment is an assumption for this calculation. The tool does not determine VAT registration, sales-tax nexus, tax rates by location or business income taxes. Check unusual situations with a qualified adviser.
Can I use USD?
Yes. Choosing US inputs uses dollars without converting amounts. Country-specific presets only apply where explicitly stated. Changing a symbol does not establish a platform fee or tax rule.
Questions about this calculation
How do I work out profit after postage and selling fees?
Enter product and labour costs per item, packaging, seller-paid postage and the applicable fee assumptions. Add buyer shipping separately. The result shows contribution after those costs; general overhead and business taxes remain separate.
Is the result my business's net profit?
It is an order contribution estimate. The operating estimate subtracts only the allocated overhead entered. Complete business net profit needs all relevant records, expenses, adjustments and taxes.