Product profit calculator

A product is only profitable after the discount it usually sells under, the parcel it needs and the share of units that come back.

Contribution per unit
€21.35
Contribution margin
39.6%
Monthly contribution
€8,538

Compare this figure across your catalogue: absolute monthly contribution decides where to act first.

The formula

  • Net price = selling price × (1 − average discount %).
  • Contribution per unit = net price − COGS − payment fee − packaging − (shipping cost − shipping charged) − (return rate % × cost per return).
  • Monthly contribution = contribution per unit × units sold.

Worked example

A €59.95 item sold at an average 10% discount nets €53.96.

Subtract €22 COGS, €1.35 payment fee, €1.20 packaging and €5.90 shipping you absorb: €23.51 remains.

At an 18% return rate costing €12 per return, expected return cost is €2.16, leaving €21.35 per unit — €8,540 per month at 400 units.

How to use the result

  • ◆Use the discount the product actually sells under on average, not the list price.
  • ◆Allocate shipping by the parcel this item needs, not a store-wide average, or bulky items stay hidden.
  • ◆Rank your catalogue by monthly contribution, then act on the bottom of the list.

Frequently asked questions

What if a product has negative contribution?+

It costs you money on every order. Before retiring it, check whether it pulls profitable items into the basket — then reprice, repackage, renegotiate or drop it.

Should I include advertising per product?+

Only if you can attribute it reliably. Contribution before ads is already enough to find drains.

A calculator gives you one number. The scan gives you the whole picture.

Run the free Profit Leak Scan for your estimated Profit Leak Report: your Profit Leak Score, the estimated share of revenue at risk and your top five leaks with recommended actions. Connect your store later to replace estimates with your actual numbers.

Free · No card · Nothing to install · Estimates, not your accounting data

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