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.